Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's revenue and free cash flow were higher than both the prior quarter and the same quarter last year. Cash conversion improved markedly from the prior quarter's negative free cash flow to a positive margin.
- Revenue generated operating cash flow and free cash flow at a positive margin, with capital expenditure representing a small portion of operating cash flow. The prior quarter's negative free cash flow, which the filing attributes primarily to an acquisition-related working capital decrease, contrasted sharply with this quarter's conversion.
- Compared to the prior quarter, free cash flow shifted from negative to positive, and revenue was higher. Compared to the same quarter last year, free cash flow was slightly higher while free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$67.7M
Capital spending and related asset purchases.
FCF margin
47.0%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-12-31 | $2.5B | $234.6M | $58.1M | $176.5M | 7.0% |
| 2024-03-31 | $2.7B | $1.3B | $68.4M | $1.2B | 46.0% |
| 2024-06-30 | $2.6B | -$3.8B | $69.0M | -$3.8B | -144.5% |
| 2024-09-30 | $2.8B | $1.4B | $67.7M | $1.3B | 47.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Recovery
Operating cash flow improved from a negative figure in the prior quarter to a positive figure this quarter, which was the primary factor behind the swing in free cash flow. Revenue growth also contributed to the higher cash generation.
This recovery restored the company's ability to generate positive free cash flow from operations after a quarter of significant outflows.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated operating cash flow and free cash flow at a positive margin, with capital expenditure representing a small portion of operating cash flow. The prior quarter's negative free cash flow, which the filing attributes primarily to an acquisition-related working capital decrease, contrasted sharply with this quarter's conversion.
Compared to the prior quarter, free cash flow shifted from negative to positive, and revenue was higher. Compared to the same quarter last year, free cash flow was slightly higher while free cash flow margin was slightly lower.
Monitor whether operating cash flow remains positive in upcoming quarters, given the acquisition-related cash outflows that affected the prior period.