Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sharply compared to the prior quarter as operating cash flow increased while capital expenditure declined. Relative to the same quarter last year, free cash flow was nearly unchanged despite a lower revenue base.
- Operating cash flow was substantially higher than revenue, resulting in a very high free cash flow margin. Capital expenditure remained a small portion of operating cash flow.
- Sequentially, revenue was lower but operating cash flow and free cash flow were higher, while capital expenditure was lower. Year-over-year, revenue and operating cash flow were lower, but capital expenditure was significantly lower, making free cash flow comparable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$729.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$768.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
1695.3%
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 | $90.0M | $533.0M | $347.0M | $186.0M | 206.7% |
| 2023-12-31 | $43.0M | $868.0M | $824.0M | $44.0M | 102.3% |
| 2024-03-31 | $46.0M | $599.0M | $47.0M | $552.0M | 1200.0% |
| 2024-06-30 | $43.0M | $768.0M | $39.0M | $729.0M | 1695.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 290.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 90.7% | 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 Improvement
Operating cash flow increased sequentially, more than offsetting the decline in revenue. This was the primary factor lifting free cash flow despite a lower revenue figure.
Free cash flow margin reached a level significantly higher than both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than revenue, resulting in a very high free cash flow margin. Capital expenditure remained a small portion of operating cash flow.
Sequentially, revenue was lower but operating cash flow and free cash flow were higher, while capital expenditure was lower. Year-over-year, revenue and operating cash flow were lower, but capital expenditure was significantly lower, making free cash flow comparable.
Monitor the relationship between reported revenue and operating cash flow, as the company notes its revenue is generated under long-term tenant contracts.