Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow and free cash flow margin declined sharply. The drop in operating cash flow was the primary factor behind the weaker cash conversion.
- Revenue rose while operating cash flow fell, leading to a lower free cash flow despite reduced capital expenditure. The free cash flow margin weakened as a result.
- Compared to the prior quarter, free cash flow and margin were lower; versus the same quarter last year, both metrics also declined significantly. Revenue was higher in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$942.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$126.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$156.0M
Cash generated by operations before capital spending.
CapEx
$29.2M
Capital spending and related asset purchases.
FCF margin
12.0%
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 | $1.0B | $395.9M | $22.0M | $373.9M | 36.5% |
| 2023-12-31 | $1.1B | $272.1M | $33.7M | $238.4M | 22.3% |
| 2024-03-31 | $1.0B | $253.2M | $49.6M | $203.6M | 20.2% |
| 2024-06-30 | $1.1B | $156.0M | $29.2M | $126.8M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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 decline
Operating cash flow decreased substantially from both the prior quarter and the year-ago period, even as revenue increased. This drove the free cash flow and margin lower.
The free cash flow margin weakened to a level well below both the prior quarter and the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell, leading to a lower free cash flow despite reduced capital expenditure. The free cash flow margin weakened as a result.
Compared to the prior quarter, free cash flow and margin were lower; versus the same quarter last year, both metrics also declined significantly. Revenue was higher in both comparisons.
Monitor operating cash flow trends, as its decline was the main observable driver of the reduced free cash flow.