Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after a negative prior quarter, though it was lower than the same quarter last year. The free cash flow margin improved from the prior quarter but weakened compared to the year-ago quarter.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was positive and higher than the prior quarter but lower than the year-ago quarter. Capital expenditure was higher than both comparison periods. Free cash flow was positive, higher than the prior quarter but lower than the year-ago quarter.
- Compared to the prior quarter, revenue and operating cash flow improved significantly, turning free cash flow from negative to positive. Compared to the same quarter last year, revenue was slightly higher, but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$337.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$451.0M
Cash generated by operations before capital spending.
CapEx
$114.0M
Capital spending and related asset purchases.
FCF margin
5.5%
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 | $2.6B | -$105.0M | $162.0M | -$267.0M | -10.3% |
| 2023-12-31 | $3.7B | $4.4B | $183.0M | $4.2B | 113.0% |
| 2024-03-31 | $4.5B | -$2.6B | $148.0M | -$2.8B | -61.4% |
| 2024-06-30 | $6.1B | $451.0M | $114.0M | $337.0M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base for cash generation.
Higher revenue supported the positive swing in operating cash flow and free cash flow 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 both the prior quarter and the year-ago quarter. Operating cash flow was positive and higher than the prior quarter but lower than the year-ago quarter. Capital expenditure was higher than both comparison periods. Free cash flow was positive, higher than the prior quarter but lower than the year-ago quarter.
Compared to the prior quarter, revenue and operating cash flow improved significantly, turning free cash flow from negative to positive. Compared to the same quarter last year, revenue was slightly higher, but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
Monitor the trend in operating cash flow relative to revenue, as it was lower than the year-ago quarter despite higher revenue.