Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter, leading to a higher free cash flow and an improved free cash flow margin. However, free cash flow and its margin were lower than the same quarter one year earlier, despite similar revenue levels.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased sequentially and was roughly stable year over year, resulting in free cash flow that improved from the prior quarter but weakened relative to the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Compared to the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were lower, capital expenditure was similar, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$198.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$62.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$162.3M
Cash generated by operations before capital spending.
CapEx
$99.9M
Capital spending and related asset purchases.
FCF margin
4.7%
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 | $1.1B | $198.8M | $62.2M | $136.6M | 13.0% |
| 2023-12-31 | $1.1B | $67.2M | $91.5M | -$24.3M | -2.1% |
| 2024-03-31 | $1.2B | $117.4M | $93.2M | $24.2M | 2.0% |
| 2024-06-30 | $1.3B | $162.3M | $99.9M | $62.4M | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -128.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 Recovery
Operating cash flow increased from the prior quarter, which was the strongest observable driver of the improvement in free cash flow. This occurred alongside higher revenue and a relatively modest increase in capital expenditure.
The sequential rise in operating cash flow directly lifted free cash flow and its margin, reversing the prior quarter's weaker performance.
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 was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased sequentially and was roughly stable year over year, resulting in free cash flow that improved from the prior quarter but weakened relative to the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Compared to the same quarter one year earlier, revenue was stable, operating cash flow and free cash flow were lower, capital expenditure was similar, and free cash flow margin weakened.
Monitor whether operating cash flow can sustain its sequential improvement, as it is the primary component of free cash flow and remains below the year-ago level.