Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sequentially but improved from the prior year. Revenue rose slightly from the previous quarter and was higher year over year.
- Operating cash flow declined from the prior quarter, leading to a lower free cash flow margin despite higher revenue. Capital expenditure increased compared to both the previous quarter and the same quarter last year.
- Compared to the prior quarter, free cash flow and margin weakened as operating cash flow fell while revenue was stable. Versus the same quarter last year, free cash flow and margin improved significantly, driven by higher operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$790.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$492.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$584.6M
Cash generated by operations before capital spending.
CapEx
$92.6M
Capital spending and related asset purchases.
FCF margin
16.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2024-12-31 | $2.9B | $584.6M | $92.6M | $492.0M | 16.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 53.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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 Volatility
Operating cash flow decreased from the prior quarter, while revenue was relatively stable. This shift was the primary observable factor behind the weaker free cash flow margin.
The decline in operating cash flow reduced free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined from the prior quarter, leading to a lower free cash flow margin despite higher revenue. Capital expenditure increased compared to both the previous quarter and the same quarter last year.
Compared to the prior quarter, free cash flow and margin weakened as operating cash flow fell while revenue was stable. Versus the same quarter last year, free cash flow and margin improved significantly, driven by higher operating cash flow.
Monitor the trend in operating cash flow, which declined sharply from the prior quarter.