Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and was higher than the same quarter last year, driven by a strong increase in operating cash flow. The free cash flow margin expanded significantly compared with both periods.
- Revenue was lower than the prior quarter but slightly below the year-ago level, while operating cash flow rose substantially from both periods. With capital expenditure remaining minimal, free cash flow and its margin improved markedly.
- Compared with the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow despite lower revenue. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow higher while revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$737.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$742.0M
Cash generated by operations before capital spending.
CapEx
$5.0M
Capital spending and related asset purchases.
FCF margin
29.0%
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 | $1.8B | $650.0M | $2.0M | $648.0M | 35.8% |
| 2023-12-31 | $3.4B | $577.0M | $8.0M | $569.0M | 17.0% |
| 2024-03-31 | $2.9B | $353.0M | $7.0M | $346.0M | 11.8% |
| 2024-06-30 | $2.5B | $742.0M | $5.0M | $737.0M | 29.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 236.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$19.0M | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, even as revenue declined sequentially. This was the primary factor behind the improvement in free cash flow and margin.
The increase in operating cash flow drove free cash flow to a higher level and expanded the margin significantly.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but slightly below the year-ago level, while operating cash flow rose substantially from both periods. With capital expenditure remaining minimal, free cash flow and its margin improved markedly.
Compared with the immediately preceding quarter, free cash flow and margin were higher, driven by stronger operating cash flow despite lower revenue. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow higher while revenue was slightly lower.
Monitor the sustainability of operating cash flow given the decline in revenue from the prior quarter.