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, driven by higher operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was stable year-over-year but increased sequentially. Operating cash flow rose both sequentially and year-over-year, while capital expenditure decreased compared to both periods, supporting higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure slightly 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
$364.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$452.1M
Cash generated by operations before capital spending.
CapEx
$88.1M
Capital spending and related asset purchases.
FCF margin
8.2%
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 | $4.5B | $649.5M | $145.5M | $504.0M | 11.1% |
| 2023-12-31 | $4.2B | $611.7M | $99.7M | $512.0M | 12.3% |
| 2024-03-31 | $3.9B | $317.2M | $93.2M | $224.0M | 5.8% |
| 2024-06-30 | $4.5B | $452.1M | $88.1M | $364.0M | 8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 sequentially and year-over-year, providing the primary lift to free cash flow. This occurred even as revenue was stable year-over-year and higher sequentially.
Higher operating cash flow directly boosted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable year-over-year but increased sequentially. Operating cash flow rose both sequentially and year-over-year, while capital expenditure decreased compared to both periods, supporting higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with capital expenditure slightly 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 trend in capital expenditure, as it decreased in the current quarter compared to both the prior quarter and the year-ago quarter.