Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from both the prior quarter and the year-ago quarter, driven by higher operating cash flow. Revenue was stable sequentially but higher year-over-year, while capital expenditure declined in both comparisons.
- Operating cash flow as a proportion of revenue increased, leading to a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further supporting free cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was slightly lower. Versus the year-ago quarter, operating cash flow and free cash flow were also higher, with capital expenditure notably lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$873.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$990.0M
Cash generated by operations before capital spending.
CapEx
$117.0M
Capital spending and related asset purchases.
FCF margin
17.3%
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 | $4.9B | $1.2B | $161.0M | $991.0M | 20.2% |
| 2023-12-31 | $5.0B | $1.1B | $197.0M | $939.0M | 19.0% |
| 2024-03-31 | $5.1B | $681.0M | $126.0M | $555.0M | 11.0% |
| 2024-06-30 | $5.1B | $990.0M | $117.0M | $873.0M | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.1B | 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 increased substantially from both the prior quarter and the year-ago quarter, driving free cash flow higher. The filing context notes that net cash provided by operations rose in the first six months of the year primarily due to higher net income.
Higher operating cash flow was the primary factor behind the improved free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased, leading to a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further supporting free cash flow.
Compared to the prior quarter, operating cash flow and free cash flow were higher, while capital expenditure was slightly lower. Versus the year-ago quarter, operating cash flow and free cash flow were also higher, with capital expenditure notably lower.
Monitor the trend in capital expenditure, as its reduction contributed to free cash flow improvement in the current quarter.