Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue turned positive this quarter, while operating cash flow remained stable. Free cash flow improved compared to both the prior quarter and the same quarter last year, supported by lower capital expenditure.
- Revenue was positive, and operating cash flow was substantially higher than revenue, resulting in a strong free cash flow margin. Capital expenditure was lower than operating cash flow, allowing free cash flow to remain positive and sizable.
- Compared to the prior quarter, revenue was higher, operating cash flow was stable, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year ago, revenue turned from negative to positive, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$325.2M
Capital spending and related asset purchases.
FCF margin
515.9%
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 | $181.0M | $1.3B | $390.7M | $909.9M | 502.7% |
| 2023-12-31 | $2.5B | $1.1B | $524.6M | $617.3M | 25.1% |
| 2024-03-31 | $173.0M | $1.3B | $396.7M | $886.9M | 512.7% |
| 2024-06-30 | $196.4M | $1.3B | $325.2M | $1.0B | 515.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 165.6% | 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.
Lower Capital Expenditure
Capital expenditure decreased compared to both the prior quarter and the same quarter last year, which directly supported higher free cash flow despite stable operating cash flow.
The reduction in capital expenditure was the strongest observable driver of the free cash flow improvement this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was positive, and operating cash flow was substantially higher than revenue, resulting in a strong free cash flow margin. Capital expenditure was lower than operating cash flow, allowing free cash flow to remain positive and sizable.
Compared to the prior quarter, revenue was higher, operating cash flow was stable, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year ago, revenue turned from negative to positive, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
Monitor the trend in capital expenditure, as its reduction was a key factor in the free cash flow improvement this quarter.