Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose above the year-ago level. Free cash flow and its margin improved versus the prior quarter and modestly surpassed the comparable quarter of the prior year.
- Operating cash flow increased sequentially and year-over-year, while capital expenditure was higher than both comparison periods. The resulting free cash flow exceeded the prior quarter and the prior-year quarter, supported by a higher free cash flow margin this quarter relative to both prior periods.
- Compared with the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter a year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all showed improvement.
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
$639.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$723.0M
Cash generated by operations before capital spending.
CapEx
$84.0M
Capital spending and related asset purchases.
FCF margin
24.7%
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 | $2.5B | $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% |
| 2024-12-31 | $2.6B | $723.0M | $84.0M | $639.0M | 24.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 301.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 strength
Operating cash flow was the strongest observable driver, rising both sequentially and year-over-year. The filing notes that for the full year, higher net income and favorable changes in accounts receivable, including higher collections, contributed to the increase in operating cash flow.
The rise in operating cash flow directly supported free cash flow improvement despite higher capital expenditure this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased sequentially and year-over-year, while capital expenditure was higher than both comparison periods. The resulting free cash flow exceeded the prior quarter and the prior-year quarter, supported by a higher free cash flow margin this quarter relative to both prior periods.
Compared with the immediately preceding quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter a year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all showed improvement.
Monitor the trajectory of capital expenditure, as it increased from both the prior quarter and year-ago quarter while revenue remained relatively stable.