Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow and lower capital expenditure. The free cash flow margin widened sequentially and year-over-year, reflecting a stronger cash conversion from revenue.
- Revenue was stable compared to a year ago and higher than the prior quarter, while operating cash flow increased relative to both periods. With capital expenditure lower than both the preceding quarter and the year-ago quarter, free cash flow rose and the free cash flow margin improved.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter last year, revenue was stable, operating cash flow and free cash flow were higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$592.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$625.8M
Cash generated by operations before capital spending.
CapEx
$33.5M
Capital spending and related asset purchases.
FCF margin
24.0%
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 | $2.5B | $592.4M | $74.2M | $518.2M | 20.5% |
| 2023-12-31 | $2.4B | $12.5M | $65.2M | -$52.7M | -2.2% |
| 2024-03-31 | $2.3B | $553.2M | $45.9M | $507.3M | 22.1% |
| 2024-06-30 | $2.5B | $625.8M | $33.5M | $592.3M | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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 Growth
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, contributing to higher free cash flow. The filing notes cash inflows from the sale of a priority review voucher and an equity interest, which supported operating cash flow.
Higher operating cash flow was the primary factor behind the 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 compared to a year ago and higher than the prior quarter, while operating cash flow increased relative to both periods. With capital expenditure lower than both the preceding quarter and the year-ago quarter, free cash flow rose and the free cash flow margin improved.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter last year, revenue was stable, operating cash flow and free cash flow were higher, and capital expenditure was lower.
Monitor the sustainability of operating cash flow levels given the inclusion of proceeds from the sale of a priority review voucher and an equity interest sale during the quarter.