Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved year over year but weakened sequentially, driven by higher operating cash flow versus the prior year. The cash conversion rate remained solid, with free cash flow margin expanding compared to the same quarter last year.
- Revenue was stable sequentially and higher year over year, while operating cash flow decreased from the prior quarter but increased from the year-ago quarter. Capital expenditure was lower both sequentially and year over year, supporting free cash flow conversion.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, with operating cash flow declining. Versus the same quarter last year, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$360.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$381.4M
Cash generated by operations before capital spending.
CapEx
$21.4M
Capital spending and related asset purchases.
FCF margin
20.8%
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 | $1.6B | $472.9M | $28.7M | $444.2M | 27.4% |
| 2023-12-31 | $1.7B | $540.7M | $59.7M | $480.9M | 27.8% |
| 2024-03-31 | $1.7B | $410.2M | $27.7M | $382.6M | 22.0% |
| 2024-06-30 | $1.7B | $381.4M | $21.4M | $360.0M | 20.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 106.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | 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 Growth
Operating cash flow increased year over year, supported by higher net income and noncash depreciation and amortization related to recent acquisitions, as noted in the filing. This was the primary factor behind the year-over-year free cash flow improvement.
The year-over-year increase in operating cash flow directly boosted free cash flow and margin 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.
Revenue was stable sequentially and higher year over year, while operating cash flow decreased from the prior quarter but increased from the year-ago quarter. Capital expenditure was lower both sequentially and year over year, supporting free cash flow conversion.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, with operating cash flow declining. Versus the same quarter last year, free cash flow and margin were higher, driven by stronger operating cash flow and lower capital expenditure.
Monitor whether operating cash flow can sustain its year-over-year improvement given the sequential decline from the prior quarter.