Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. However, free cash flow and free cash flow margin weakened significantly compared to both periods.
- Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the year-ago quarter but lower than the prior quarter. The resulting free cash flow was substantially lower, and the free cash flow margin narrowed considerably.
- Compared to the immediately preceding quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were 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
$56.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$348.0M
Cash generated by operations before capital spending.
CapEx
$292.0M
Capital spending and related asset purchases.
FCF margin
0.8%
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 | $6.6B | $810.0M | $281.0M | $529.0M | 8.0% |
| 2023-12-31 | $6.8B | $932.0M | $356.0M | $576.0M | 8.4% |
| 2024-03-31 | $6.4B | $784.0M | $333.0M | $451.0M | 7.0% |
| 2024-06-30 | $7.1B | $348.0M | $292.0M | $56.0M | 0.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 9.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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.
Cash Conversion Pressure
Operating cash flow declined despite higher revenue, leading to a sharp drop in free cash flow and free cash flow margin. This divergence between top-line growth and cash generation is the strongest observable driver of the quarter's results.
The weakened cash conversion reduced free cash flow to a level well below both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was slightly higher than the year-ago quarter but lower than the prior quarter. The resulting free cash flow was substantially lower, and the free cash flow margin narrowed considerably.
Compared to the immediately preceding quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the relationship between revenue growth and operating cash flow, as revenue increased while cash conversion weakened.