Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable sequentially and increased year-over-year, but free cash flow margin declined as capital expenditure rose relative to operating cash flow. Operating cash flow improved from the prior quarter but was lower versus the same quarter last year, reflecting mixed cash conversion.
- Cash conversion from revenue weakened: free cash flow margin dropped to 11.4% from 13.2% in the prior quarter and 17.8% a year ago, driven by increased capital expenditure relative to operating cash flow.
- Compared to the prior quarter, free cash flow declined as capital expenditure rose faster than operating cash flow. Year-over-year, free cash flow fell sharply due to lower operating cash flow despite slightly lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$276.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$85.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$190.1M
Cash generated by operations before capital spending.
CapEx
$104.9M
Capital spending and related asset purchases.
FCF margin
11.4%
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 | $695.4M | $118.2M | $90.6M | $27.6M | 4.0% |
| 2024-06-30 | $702.1M | $165.0M | $100.2M | $64.8M | 9.2% |
| 2024-09-30 | $746.9M | $180.1M | $81.3M | $98.8M | 13.2% |
| 2024-12-31 | $748.8M | $190.1M | $104.9M | $85.2M | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $282.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose significantly from the prior quarter, outpacing the increase in operating cash flow, leading to a contraction in free cash flow margin.
If capital expenditure continues to rise without proportional growth in operating cash flow, free cash flow margin may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue weakened: free cash flow margin dropped to 11.4% from 13.2% in the prior quarter and 17.8% a year ago, driven by increased capital expenditure relative to operating cash flow.
Compared to the prior quarter, free cash flow declined as capital expenditure rose faster than operating cash flow. Year-over-year, free cash flow fell sharply due to lower operating cash flow despite slightly lower capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as rising capex is pressuring free cash flow generation.