Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially but weakened compared to the same quarter a year ago. Operating cash flow increased from the prior quarter while capital expenditure remained stable.
- Revenue was slightly lower than the prior quarter and unchanged from a year ago. Operating cash flow rose from the previous quarter but fell versus the year-ago period, while capital expenditure stayed virtually flat. The resulting free cash flow and margin followed the same pattern: higher sequentially, lower year over year.
- Compared with the prior quarter, free cash flow and margin improved due to higher operating cash flow on slightly lower revenue. Versus the same quarter a year ago, free cash flow and margin weakened as operating cash flow declined despite similar revenue and capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$828.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$237.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$311.0M
Cash generated by operations before capital spending.
CapEx
$74.0M
Capital spending and related asset purchases.
FCF margin
11.3%
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 | $2.1B | $455.0M | $94.0M | $361.0M | 17.0% |
| 2024-03-31 | $2.0B | $89.0M | $74.0M | $15.0M | 0.7% |
| 2024-06-30 | $2.2B | $288.0M | $73.0M | $215.0M | 9.9% |
| 2024-09-30 | $2.1B | $311.0M | $74.0M | $237.0M | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow improvement
Operating cash flow rose from the prior quarter despite slightly lower revenue, indicating stronger cash conversion. The filing attributes the increase to higher cash earnings and non-recurring costs from a prior year that did not repeat.
This improvement drove the sequential increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter and unchanged from a year ago. Operating cash flow rose from the previous quarter but fell versus the year-ago period, while capital expenditure stayed virtually flat. The resulting free cash flow and margin followed the same pattern: higher sequentially, lower year over year.
Compared with the prior quarter, free cash flow and margin improved due to higher operating cash flow on slightly lower revenue. Versus the same quarter a year ago, free cash flow and margin weakened as operating cash flow declined despite similar revenue and capital expenditure.
Monitor inventory levels, as the filing notes that working capital use, primarily inventory build-up, partially offset cash generation.