Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved significantly compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened substantially versus both periods.
- Revenue was stable relative to the prior quarter and higher than a year ago. Operating cash flow converted into free cash flow after a moderate capital expenditure, resulting in a free cash flow margin that was markedly higher than both comparison periods.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, the same metrics were also higher, while revenue was higher and capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$655.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$710.9M
Cash generated by operations before capital spending.
CapEx
$55.4M
Capital spending and related asset purchases.
FCF margin
22.4%
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 |
|---|---|---|---|---|---|
| 2023-09-30 | $2.8B | $330.5M | $50.4M | $280.1M | 10.1% |
| 2023-12-31 | $3.0B | $362.6M | $54.3M | $308.3M | 10.3% |
| 2024-03-31 | $2.9B | $82.5M | $50.8M | $31.7M | 1.1% |
| 2024-06-30 | $2.9B | $710.9M | $55.4M | $655.5M | 22.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 347.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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.
Operating Cash Flow Strength
Operating cash flow was the strongest observable driver, rising sharply from both the prior quarter and the year-ago quarter. This directly lifted free cash flow and the free cash flow margin.
The increase in operating cash flow was the primary factor behind the improvement 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 stable relative to the prior quarter and higher than a year ago. Operating cash flow converted into free cash flow after a moderate capital expenditure, resulting in a free cash flow margin that was markedly higher than both comparison periods.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, the same metrics were also higher, while revenue was higher and capital expenditure was slightly higher.
Monitor the level of operating cash flow relative to revenue, as the current quarter's conversion was substantially higher than recent trends.