Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but was stable compared to the same quarter last year. Operating cash flow strengthened from the prior quarter, while capital expenditure remained relatively consistent.
- Revenue was stable sequentially and slightly higher year over year. Operating cash flow increased from the prior quarter, leading to higher free cash flow and an improved free cash flow margin compared to the previous quarter.
- Compared to the prior quarter, free cash flow and free cash flow margin improved, driven by higher operating cash flow. Versus the same quarter last year, free cash flow was slightly higher and the margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$706.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$150.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$197.7M
Cash generated by operations before capital spending.
CapEx
$47.5M
Capital spending and related asset purchases.
FCF margin
6.7%
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 | $2.1B | $322.6M | $57.1M | $265.5M | 12.7% |
| 2023-12-30 | $2.1B | $311.9M | $92.3M | $219.6M | 10.4% |
| 2024-03-30 | $2.2B | $119.8M | $48.8M | $71.0M | 3.3% |
| 2024-06-29 | $2.2B | $197.7M | $47.5M | $150.2M | 6.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 Improvement
Operating cash flow increased from the prior quarter, which directly lifted free cash flow. Capital expenditure was relatively unchanged, so the improvement in cash generation was the key factor.
Higher operating cash flow drove the sequential improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and slightly higher year over year. Operating cash flow increased from the prior quarter, leading to higher free cash flow and an improved free cash flow margin compared to the previous quarter.
Compared to the prior quarter, free cash flow and free cash flow margin improved, driven by higher operating cash flow. Versus the same quarter last year, free cash flow was slightly higher and the margin was stable.
Monitor operating cash flow trends, as the sequential improvement was the primary driver of free cash flow growth.