Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin also strengthened.
- Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow increased relative to both periods, while capital expenditure was slightly lower than the prior quarter. This resulted in higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were higher, with operating cash flow higher and capital expenditure slightly lower. Compared to the same quarter last year, operating cash flow was higher, while capital expenditure and free cash flow were not available for that period.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$419.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$482.0M
Cash generated by operations before capital spending.
CapEx
$63.0M
Capital spending and related asset purchases.
FCF margin
18.7%
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 |
|---|---|---|---|---|---|
| 2023-12-31 | $2.9B | $522.0M | n/a | n/a | n/a |
| 2024-03-31 | $2.3B | $24.0M | $60.0M | -$36.0M | -1.6% |
| 2024-06-30 | $2.2B | $407.0M | $66.0M | $341.0M | 15.4% |
| 2024-09-30 | $2.2B | $482.0M | $63.0M | $419.0M | 18.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -25.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.9B | 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 Growth
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the primary support for the increase in free cash flow.
Higher operating cash flow directly improved 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 stable compared to the prior quarter and higher than a year ago. Operating cash flow increased relative to both periods, while capital expenditure was slightly lower than the prior quarter. This resulted in higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow and margin were higher, with operating cash flow higher and capital expenditure slightly lower. Compared to the same quarter last year, operating cash flow was higher, while capital expenditure and free cash flow were not available for that period.
Monitor the trend in capital expenditure, as it was slightly lower than the prior quarter.