Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive as operating cash flow expanded sharply despite lower revenue. The free cash flow margin improved compared with both the preceding quarter and the same quarter last year.
- Revenue declined while operating cash flow rose, producing a much higher free cash flow margin. Capital expenditure increased modestly, but the increase in operating cash flow more than offset that, leading to a solid conversion of revenue into free cash flow.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow moved from negative to positive, and the free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin all increased, while revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$552.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$660.0M
Cash generated by operations before capital spending.
CapEx
$108.0M
Capital spending and related asset purchases.
FCF margin
9.3%
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 | $3.4B | $1.0B | $73.0M | $968.0M | 28.7% |
| 2023-12-31 | $4.3B | $1.1B | $222.0M | $840.0M | 19.5% |
| 2024-03-31 | $5.4B | $40.0M | $102.0M | -$62.0M | -1.1% |
| 2024-06-30 | $5.9B | $660.0M | $108.0M | $552.0M | 9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 23.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.6B | 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
The strongest observable driver was the substantial increase in operating cash flow relative to both prior periods, which turned free cash flow strongly positive even as revenue decreased.
The increase in operating cash flow was the primary factor behind the improvement in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined while operating cash flow rose, producing a much higher free cash flow margin. Capital expenditure increased modestly, but the increase in operating cash flow more than offset that, leading to a solid conversion of revenue into free cash flow.
Compared with the immediately preceding quarter, operating cash flow and free cash flow moved from negative to positive, and the free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin all increased, while revenue was lower.
Monitor whether the current level of operating cash flow can be sustained in subsequent quarters given the decline in revenue.