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 a substantial increase in operating cash flow. Compared to the same quarter last year, free cash flow was slightly higher while revenue was lower.
- Revenue was slightly higher than the prior quarter, but operating cash flow increased substantially, resulting in a much higher free cash flow and free cash flow margin. Capital expenditure was modestly higher than the prior quarter.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were significantly higher, driven by a much higher operating cash flow. Compared to the same quarter one year earlier, free cash flow was slightly higher and free cash flow margin was slightly improved, despite lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$829.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$809.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$943.0M
Cash generated by operations before capital spending.
CapEx
$134.0M
Capital spending and related asset purchases.
FCF margin
22.9%
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 | $3.4B | -$135.0M | $124.0M | -$259.0M | -7.5% |
| 2023-12-31 | $3.3B | $363.0M | $121.0M | $242.0M | 7.4% |
| 2024-03-31 | $3.4B | $150.0M | $113.0M | $37.0M | 1.1% |
| 2024-06-30 | $3.5B | $943.0M | $134.0M | $809.0M | 22.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 314.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 Surge
Operating cash flow increased substantially from the prior quarter, far outpacing the modest revenue increase. This was the strongest observable driver of the quarter's free cash flow improvement.
The surge in operating cash flow directly lifted free cash flow and free cash flow margin to levels well above the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, but operating cash flow increased substantially, resulting in a much higher free cash flow and free cash flow margin. Capital expenditure was modestly higher than the prior quarter.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were significantly higher, driven by a much higher operating cash flow. Compared to the same quarter one year earlier, free cash flow was slightly higher and free cash flow margin was slightly improved, despite lower revenue.
Monitor the level of operating cash flow relative to revenue, as the current quarter's conversion was substantially higher than both the prior quarter and the year-ago quarter.