Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to a year ago. The quarter showed a higher operating cash flow conversion relative to the immediate prior period.
- Revenue was higher than the preceding quarter, while operating cash flow increased, resulting in an improved free cash flow margin. Capital expenditure was higher sequentially, but free cash flow still rose.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher. Versus the same quarter one year earlier, revenue was lower and free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$483.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$259.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$340.0M
Cash generated by operations before capital spending.
CapEx
$81.0M
Capital spending and related asset purchases.
FCF margin
13.6%
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 | $1.4B | $20.0M | $24.0M | -$4.0M | -0.3% |
| 2023-12-31 | $2.0B | $153.0M | $52.0M | $101.0M | 5.1% |
| 2024-03-31 | $1.8B | $182.0M | $55.0M | $127.0M | 7.0% |
| 2024-06-30 | $1.9B | $340.0M | $81.0M | $259.0M | 13.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | 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 uplift
The sequential increase in operating cash flow was the strongest observable driver, outweighing the higher capital expenditure.
It directly lifted free cash flow and the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the preceding quarter, while operating cash flow increased, resulting in an improved free cash flow margin. Capital expenditure was higher sequentially, but free cash flow still rose.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both higher. Versus the same quarter one year earlier, revenue was lower and free cash flow margin was lower.
Monitor the relationship between operating cash flow and revenue in future quarters as the current margin improvement may not persist.