Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially driven by higher operating cash flow, but remained below the year-ago level. The free cash flow margin strengthened from the prior quarter yet was lower than the same quarter last year.
- Revenue rose while operating cash flow increased sharply, leading to a higher free cash flow and margin compared to the previous quarter. Capital expenditure was relatively stable, so the conversion was largely driven by operating cash flow.
- Compared to the immediately preceding quarter, free cash flow and margin improved significantly. However, versus the same quarter one year earlier, both free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$738.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$332.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$354.0M
Cash generated by operations before capital spending.
CapEx
$22.0M
Capital spending and related asset purchases.
FCF margin
9.7%
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 | $2.8B | $599.0M | $19.0M | $580.0M | 20.9% |
| 2023-12-31 | $2.4B | -$239.0M | $18.0M | -$257.0M | -10.6% |
| 2024-03-31 | $3.1B | $101.0M | $18.0M | $83.0M | 2.7% |
| 2024-06-30 | $3.4B | $354.0M | $22.0M | $332.0M | 9.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -11066.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | 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 Improvement
Operating cash flow rose substantially from the prior quarter, providing the primary lift to free cash flow. The increase was partly offset by a slight uptick in capital expenditure.
Despite the sequential improvement, operating cash flow remains lower than the year-ago quarter, keeping free cash flow margin below its prior-year level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased sharply, leading to a higher free cash flow and margin compared to the previous quarter. Capital expenditure was relatively stable, so the conversion was largely driven by operating cash flow.
Compared to the immediately preceding quarter, free cash flow and margin improved significantly. However, versus the same quarter one year earlier, both free cash flow and margin were lower.
Monitor whether free cash flow margin can sustain or improve, as it remains below the level achieved one year ago.