Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved markedly in the third quarter, driven by higher operating cash flow. Revenue was slightly higher than both the prior quarter and the year-ago quarter.
- Revenue was higher than both the preceding quarter and the same quarter last year. Operating cash flow increased more than proportionally, capital expenditure remained similar to the prior quarter but was slightly higher than a year ago, resulting in a higher free cash flow and an improved free cash flow margin.
- Free cash flow and margin were higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow also improved relative to both periods, while capital expenditure was stable compared to the prior quarter and slightly higher than the year-ago level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$496.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$542.0M
Cash generated by operations before capital spending.
CapEx
$46.0M
Capital spending and related asset purchases.
FCF margin
18.6%
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 | $686.0M | $77.0M | $609.0M | 24.1% |
| 2024-03-31 | $2.5B | $334.0M | $31.0M | $303.0M | 12.1% |
| 2024-06-30 | $2.6B | $235.0M | $46.0M | $189.0M | 7.1% |
| 2024-09-30 | $2.7B | $542.0M | $46.0M | $496.0M | 18.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 175.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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.
Higher Operating Cash Flow
Operating cash flow was higher than the prior quarter and the year-ago period. The filing notes that the increase was supported by higher net income and changes in accounts payable due to timing.
The stronger operating cash flow directly lifted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the preceding quarter and the same quarter last year. Operating cash flow increased more than proportionally, capital expenditure remained similar to the prior quarter but was slightly higher than a year ago, resulting in a higher free cash flow and an improved free cash flow margin.
Free cash flow and margin were higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow also improved relative to both periods, while capital expenditure was stable compared to the prior quarter and slightly higher than the year-ago level.
Monitor the timing of accounts payable, as it contributed to operating cash flow in the current period and may vary in future quarters.