Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter a year earlier. Free cash flow was stable sequentially and higher year over year, while free cash flow margin was lower than the prior quarter and comparable to the year-ago quarter.
- Operating cash flow was slightly lower than the prior quarter but higher than the year-ago quarter. Capital expenditure was lower than both prior periods, resulting in free cash flow that was stable sequentially and higher year over year.
- Compared to the prior quarter, revenue was higher and operating cash flow was lower, leading to a lower free cash flow margin. Compared to the same quarter a year earlier, revenue and operating cash flow were both higher, and free cash flow margin was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$11.0M
Capital spending and related asset purchases.
FCF margin
35.6%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $3.3B | $2.0B | $11.0M | $2.0B | 58.8% |
| 2023-12-31 | $4.0B | $1.7B | $15.0M | $1.6B | 41.5% |
| 2024-03-31 | $3.9B | $1.6B | $15.0M | $1.5B | 39.3% |
| 2024-06-30 | $4.2B | $1.5B | $11.0M | $1.5B | 35.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Revenue Growth
Revenue increased from both the prior quarter and the year-ago quarter, providing a foundation for higher free cash flow year over year.
The higher revenue supported improved free cash flow generation compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was slightly lower than the prior quarter but higher than the year-ago quarter. Capital expenditure was lower than both prior periods, resulting in free cash flow that was stable sequentially and higher year over year.
Compared to the prior quarter, revenue was higher and operating cash flow was lower, leading to a lower free cash flow margin. Compared to the same quarter a year earlier, revenue and operating cash flow were both higher, and free cash flow margin was similar.
Monitor the direction of operating cash flow, as it declined from the prior quarter despite higher revenue.