Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to both the prior quarter and the same quarter a year ago, while free cash flow margin slightly weakened relative to the prior quarter but improved compared to the prior year. The key driver was a reduction in capital expenditure, which supported free cash flow conversion.
- Free cash flow was derived from operating cash flow less capital expenditure; the cash conversion from revenue to free cash flow was moderate, with margin remaining largely stable compared to the prior year and slightly lower than the prior quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure also decreased, and free cash flow margin weakened slightly. Versus the same quarter one year earlier, operating cash flow was essentially unchanged, capital expenditure was lower, and free cash flow and free cash flow margin both improved modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$784.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$206.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$236.9M
Cash generated by operations before capital spending.
CapEx
$30.3M
Capital spending and related asset purchases.
FCF margin
13.7%
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 | $1.5B | $285.9M | $58.3M | $227.6M | 15.6% |
| 2023-12-31 | $1.5B | $235.5M | $102.0M | $133.5M | 8.7% |
| 2024-03-31 | $1.5B | $263.0M | $46.3M | $216.7M | 14.4% |
| 2024-06-30 | $1.5B | $236.9M | $30.3M | $206.6M | 13.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Capital Expenditure
Capital expenditure in the current quarter was lower than both the prior quarter and the year-ago quarter, which directly supported free cash flow despite lower operating cash flow than the prior quarter.
The reduction in capital expenditure had a favorable effect on free cash flow and free cash flow margin relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow was derived from operating cash flow less capital expenditure; the cash conversion from revenue to free cash flow was moderate, with margin remaining largely stable compared to the prior year and slightly lower than the prior quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while capital expenditure also decreased, and free cash flow margin weakened slightly. Versus the same quarter one year earlier, operating cash flow was essentially unchanged, capital expenditure was lower, and free cash flow and free cash flow margin both improved modestly.
Monitor operating cash flow generation relative to stable revenue levels for signs of conversion pressure.