Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a negative prior quarter, supported by a significant improvement in operating cash flow. Revenue grew compared to both the prior quarter and the same quarter last year, while the free cash flow margin strengthened.
- Operating cash flow increased substantially from the prior quarter, driving free cash flow higher despite a slight reduction in capital expenditure. The free cash flow margin improved markedly, reflecting stronger cash conversion from revenue.
- Compared to the prior quarter, operating cash flow and free cash flow both improved, with free cash flow turning positive. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, while the free cash flow margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$658.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$813.0M
Cash generated by operations before capital spending.
CapEx
$155.0M
Capital spending and related asset purchases.
FCF margin
16.0%
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 | $3.5B | $698.0M | $190.0M | $508.0M | 14.4% |
| 2023-12-31 | $3.7B | $957.0M | $267.0M | $690.0M | 18.5% |
| 2024-03-31 | $3.9B | $164.0M | $179.0M | -$15.0M | -0.4% |
| 2024-06-30 | $4.1B | $813.0M | $155.0M | $658.0M | 16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 204.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 Recovery
Operating cash flow increased significantly from the prior quarter, reversing a weak cash conversion period. This was the strongest observable driver of the quarter's free cash flow improvement.
The recovery in operating cash flow directly enabled the swing from negative to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from the prior quarter, driving free cash flow higher despite a slight reduction in capital expenditure. The free cash flow margin improved markedly, reflecting stronger cash conversion from revenue.
Compared to the prior quarter, operating cash flow and free cash flow both improved, with free cash flow turning positive. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, while the free cash flow margin also improved.
Monitor the sustainability of operating cash flow levels relative to revenue growth in upcoming quarters.