Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, revenue was lower than the prior quarter but higher than a year ago. Operating cash flow improved markedly from the prior quarter and was above the year-ago level, resulting in a free cash flow margin that was slightly below the year-ago margin but well above the prior quarter's margin.
- Revenue converted into operating cash flow at a higher rate than the prior quarter, with capital expenditure increasing from both comparison periods. The resulting free cash flow margin was stable relative to the year-ago quarter.
- Compared to the prior quarter, operating cash flow and free cash flow were substantially higher, while revenue was lower. Versus the year-ago quarter, revenue and operating cash flow were higher, but capital expenditure increased, leading to a slightly lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$911.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$334.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$360.0M
Cash generated by operations before capital spending.
CapEx
$26.0M
Capital spending and related asset purchases.
FCF margin
28.4%
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 | $1.1B | $316.0M | $13.8M | $302.2M | 28.3% |
| 2023-12-31 | $1.0B | $306.0M | $31.0M | $275.0M | 26.8% |
| 2024-03-31 | $1.3B | $13.0M | $13.0M | $0 | 0.0% |
| 2024-06-30 | $1.2B | $360.0M | $26.0M | $334.0M | 28.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing the primary support for free cash flow generation despite higher capital expenditure.
The strong operating cash flow enabled a free cash flow margin that remained near the year-ago level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue converted into operating cash flow at a higher rate than the prior quarter, with capital expenditure increasing from both comparison periods. The resulting free cash flow margin was stable relative to the year-ago quarter.
Compared to the prior quarter, operating cash flow and free cash flow were substantially higher, while revenue was lower. Versus the year-ago quarter, revenue and operating cash flow were higher, but capital expenditure increased, leading to a slightly lower free cash flow margin.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter.