Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by higher operating cash flow. The margin was stable compared to the same quarter last year.
- Revenue increased while operating cash flow rose substantially, leading to a higher free cash flow. Capital expenditure was lower than the prior quarter but higher than a year ago, and the free cash flow margin improved sequentially.
- Compared to the prior quarter, free cash flow and margin were higher, with operating cash flow significantly improved. Versus the same quarter last year, free cash flow and margin were slightly higher, while revenue was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$502.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$152.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$173.0M
Cash generated by operations before capital spending.
CapEx
$20.9M
Capital spending and related asset purchases.
FCF margin
15.8%
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 | $917.9M | $151.0M | $20.7M | $130.3M | 14.2% |
| 2023-12-31 | $897.4M | $219.5M | $23.5M | $196.0M | 21.8% |
| 2024-03-31 | $893.9M | $51.1M | $27.2M | $23.9M | 2.7% |
| 2024-06-30 | $965.6M | $173.0M | $20.9M | $152.1M | 15.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | 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 substantially higher than both the prior quarter and the year-ago quarter, driving the improvement in free cash flow.
This was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose substantially, leading to a higher free cash flow. Capital expenditure was lower than the prior quarter but higher than a year ago, and the free cash flow margin improved sequentially.
Compared to the prior quarter, free cash flow and margin were higher, with operating cash flow significantly improved. Versus the same quarter last year, free cash flow and margin were slightly higher, while revenue was also higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it was higher year over year.