Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as revenue and operating cash flow rose while capital expenditure declined. Compared to the same quarter last year, free cash flow and margin were lower, reflecting a weaker cash conversion rate.
- Revenue increased from the prior quarter, and operating cash flow grew at a similar pace, leading to higher free cash flow and a slightly improved free cash flow margin. The conversion from revenue to free cash flow remained stable sequentially but was lower year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved modestly. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
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
$391.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$475.0M
Cash generated by operations before capital spending.
CapEx
$84.0M
Capital spending and related asset purchases.
FCF margin
24.9%
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 | $1.3B | $618.0M | $147.0M | $471.0M | 37.0% |
| 2023-12-31 | $1.6B | $480.0M | $188.0M | $292.0M | 18.6% |
| 2024-03-31 | $1.5B | $445.0M | $98.0M | $347.0M | 23.6% |
| 2024-06-30 | $1.6B | $475.0M | $84.0M | $391.0M | 24.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | 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.
Sequential Revenue and Cash Flow Growth
Revenue increased from the prior quarter, and operating cash flow rose in tandem, driving free cash flow higher. Capital expenditure declined, further supporting the sequential improvement in free cash flow.
The sequential improvement in free cash flow and margin was the strongest observable driver this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, and operating cash flow grew at a similar pace, leading to higher free cash flow and a slightly improved free cash flow margin. The conversion from revenue to free cash flow remained stable sequentially but was lower year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved modestly. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor the trend in capital expenditure, which decreased sequentially but remained near the prior year level.