Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased versus the prior quarter and the same quarter last year. Operating cash flow turned positive, resulting in positive free cash flow and a positive margin, a significant improvement from negative figures in both comparison periods.
- Revenue rose, and operating cash flow moved from negative to positive, while capital expenditure was slightly lower than the prior quarter and the year-ago quarter. The combination drove free cash flow into positive territory, yielding a positive free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher, and operating cash flow, free cash flow, and margin all improved from negative to positive. Compared to the same quarter one year earlier, revenue was higher, and operating cash flow, free cash flow, and margin also improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$726.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$220.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$287.0M
Cash generated by operations before capital spending.
CapEx
$67.0M
Capital spending and related asset purchases.
FCF margin
2.7%
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 | $7.7B | $383.0M | $76.0M | $307.0M | 4.0% |
| 2023-12-31 | $8.9B | $853.0M | $94.0M | $759.0M | 8.6% |
| 2024-03-31 | $7.8B | -$492.0M | $68.0M | -$560.0M | -7.2% |
| 2024-06-30 | $8.3B | $287.0M | $67.0M | $220.0M | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | 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 Turnaround
Operating cash flow shifted from negative in both the prior quarter and the year-ago quarter to positive in the current quarter. This was the primary factor behind the swing from negative to positive free cash flow.
The positive operating cash flow enabled the company to generate free cash flow despite capital expenditure outflows.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, and operating cash flow moved from negative to positive, while capital expenditure was slightly lower than the prior quarter and the year-ago quarter. The combination drove free cash flow into positive territory, yielding a positive free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher, and operating cash flow, free cash flow, and margin all improved from negative to positive. Compared to the same quarter one year earlier, revenue was higher, and operating cash flow, free cash flow, and margin also improved from negative to positive.
Monitor the company's capital expenditure against its stated full-year expectations, as first-half spending is already known.