Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than both the prior quarter and the same quarter last year. Capital expenditure increased from the prior quarter, causing free cash flow to be slightly lower than the prior quarter but higher than the year-ago quarter, while free cash flow margin weakened sequentially but improved year over year.
- Revenue was higher; operating cash flow also increased, but capital expenditure rose, resulting in free cash flow that was slightly lower than the prior quarter but higher than the year-ago quarter. The free cash flow margin weakened compared to the prior quarter but improved compared to the same quarter last year.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was higher, free cash flow was slightly lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, capital expenditure was stable, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$407.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$513.0M
Cash generated by operations before capital spending.
CapEx
$106.0M
Capital spending and related asset purchases.
FCF margin
17.2%
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 | $1.6B | $363.0M | $49.0M | $314.0M | 19.6% |
| 2024-06-30 | $1.8B | $342.0M | $50.0M | $292.0M | 16.6% |
| 2024-09-30 | $1.8B | $471.0M | $52.0M | $419.0M | 22.9% |
| 2024-12-31 | $2.4B | $513.0M | $106.0M | $407.0M | 17.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | 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.
Revenue Growth
Revenue was higher compared to both the prior quarter and the same quarter last year, providing a larger base for cash generation.
The higher revenue supported a higher operating cash flow, though capital expenditure also increased relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher; operating cash flow also increased, but capital expenditure rose, resulting in free cash flow that was slightly lower than the prior quarter but higher than the year-ago quarter. The free cash flow margin weakened compared to the prior quarter but improved compared to the same quarter last year.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was higher, free cash flow was slightly lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, capital expenditure was stable, and the free cash flow margin improved.
The filing indicates plans to deliver materially higher capital returns going forward, which may affect future free cash flow allocation.