Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but weakened compared to the same quarter last year. The cash conversion rate, measured by free cash flow margin, was lower than a year ago despite higher revenue.
- Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow increased from the prior quarter but was lower than a year ago, while capital expenditure decreased compared to both periods. Free cash flow margin improved sequentially but declined year over year.
- Compared to the prior quarter, free cash flow and margin both improved, driven by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter last year, free cash flow and margin were lower, as operating cash flow declined more than the reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$460.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$513.0M
Cash generated by operations before capital spending.
CapEx
$53.0M
Capital spending and related asset purchases.
FCF margin
12.2%
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 | $3.0B | $1.0B | $58.0M | $985.0M | 33.4% |
| 2023-12-31 | $3.4B | $1.3B | $49.0M | $1.2B | 35.9% |
| 2024-03-31 | $4.1B | $309.0M | $48.0M | $261.0M | 6.4% |
| 2024-06-30 | $3.8B | $513.0M | $53.0M | $460.0M | 12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.6B | 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 Decline
Operating cash flow was lower than the same quarter last year, which was the primary factor behind the year-over-year drop in free cash flow and margin. Revenue was higher, indicating a shift in cash conversion efficiency.
The year-over-year weakening in operating cash flow reduced free cash flow despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow increased from the prior quarter but was lower than a year ago, while capital expenditure decreased compared to both periods. Free cash flow margin improved sequentially but declined year over year.
Compared to the prior quarter, free cash flow and margin both improved, driven by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter last year, free cash flow and margin were lower, as operating cash flow declined more than the reduction in capital expenditure.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite higher revenue.