Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved markedly as operating cash flow rose sharply from the prior quarter and turned positive versus a year ago. The stronger free cash flow and margin were driven entirely by the operating cash flow increase, while capital expenditure remained stable.
- Revenue was roughly flat versus both comparison periods. Operating cash flow improved sequentially and was much higher than the same quarter last year, leading to a positive free cash flow and a free cash flow margin that strengthened from a negative low to a positive level.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, and the margin turned positive from a minimal level. Compared to the same quarter one year earlier, operating cash flow moved from a low level to a much higher level, and free cash flow shifted from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$183.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$262.0M
Cash generated by operations before capital spending.
CapEx
$79.0M
Capital spending and related asset purchases.
FCF margin
3.8%
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 | $828.0M | $73.0M | $755.0M | 15.4% |
| 2023-12-31 | $4.8B | $737.0M | $78.0M | $659.0M | 13.9% |
| 2024-03-31 | $4.8B | $95.0M | $79.0M | $16.0M | 0.3% |
| 2024-06-30 | $4.8B | $262.0M | $79.0M | $183.0M | 3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 Recovery
Operating cash flow was the strongest driver, rising substantially from both the prior quarter and the year-ago quarter. This directly lifted free cash flow and margin, as capital expenditure remained nearly unchanged.
The quarter's free cash flow turned positive and the margin improved meaningfully as a result of the operating cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was roughly flat versus both comparison periods. Operating cash flow improved sequentially and was much higher than the same quarter last year, leading to a positive free cash flow and a free cash flow margin that strengthened from a negative low to a positive level.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, and the margin turned positive from a minimal level. Compared to the same quarter one year earlier, operating cash flow moved from a low level to a much higher level, and free cash flow shifted from negative to positive.
Monitor whether the sequential improvement in operating cash flow can be sustained, given that the prior quarter's low level was an outlier.