Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened versus both periods, as operating cash flow declined while capital expenditure rose.
- Operating cash flow was lower than both the preceding quarter and the year-ago quarter, while capital expenditure was higher than both periods. This resulted in free cash flow that was lower than both comparable quarters, and the free cash flow margin also declined.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow was slightly lower, capital expenditure was higher, and free cash flow and its margin were lower. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow and its margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$422.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$562.6M
Cash generated by operations before capital spending.
CapEx
$140.5M
Capital spending and related asset purchases.
FCF margin
14.2%
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 | $2.5B | $480.5M | $131.2M | $349.3M | 14.1% |
| 2023-12-31 | $2.5B | $265.5M | $171.9M | $93.5M | 3.7% |
| 2024-03-31 | $2.7B | $569.2M | $132.7M | $436.5M | 16.2% |
| 2024-06-30 | $3.0B | $562.6M | $140.5M | $422.1M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | 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.
Operating Cash Flow Weakening
Operating cash flow was lower than both the prior quarter and the same quarter last year, even as revenue increased. This was the strongest observable driver of the decline in free cash flow.
The lower operating cash flow, combined with higher capital expenditure, reduced free cash flow and its margin relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the preceding quarter and the year-ago quarter, while capital expenditure was higher than both periods. This resulted in free cash flow that was lower than both comparable quarters, and the free cash flow margin also declined.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow was slightly lower, capital expenditure was higher, and free cash flow and its margin were lower. Versus the same quarter one year earlier, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow and its margin were lower.
Monitor the trend in operating cash flow, which declined sequentially and year-over-year despite higher revenue.