Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened notably over both periods.
- Revenue increased from the prior quarter and the year-ago quarter, while operating cash flow rose substantially, leading to a higher free cash flow. Capital expenditure remained relatively stable, so the improvement in free cash flow margin was driven by stronger cash conversion from revenue.
- Compared to the prior quarter, free cash flow and margin were higher, with operating cash flow increasing more than revenue. Versus the same quarter last year, free cash flow and margin were also higher, as operating cash flow grew substantially while revenue increased modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$496.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$540.9M
Cash generated by operations before capital spending.
CapEx
$44.1M
Capital spending and related asset purchases.
FCF margin
50.9%
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 | $970.9M | $285.7M | $38.2M | $247.4M | 25.5% |
| 2023-12-31 | $937.3M | $716.5M | $36.7M | $679.8M | 72.5% |
| 2024-03-31 | $935.3M | $350.2M | $41.2M | $309.0M | 33.0% |
| 2024-06-30 | $975.7M | $540.9M | $44.1M | $496.8M | 50.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 197.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | 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 Growth
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the strongest observable driver of the higher free cash flow and margin.
The improvement in operating cash flow directly boosted free cash flow and margin, with capital expenditure remaining relatively stable.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and the year-ago quarter, while operating cash flow rose substantially, leading to a higher free cash flow. Capital expenditure remained relatively stable, so the improvement in free cash flow margin was driven by stronger cash conversion from revenue.
Compared to the prior quarter, free cash flow and margin were higher, with operating cash flow increasing more than revenue. Versus the same quarter last year, free cash flow and margin were also higher, as operating cash flow grew substantially while revenue increased modestly.
Monitor the trend in operating cash flow relative to revenue, as its strong growth was the primary driver of the free cash flow improvement.