Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, while free cash flow improved year-over-year but declined sequentially. The company's liquidity position included significant cash and marketable securities, offset by a substantial accumulated deficit, as described in the filing.
- Operating cash flow decreased sequentially but increased year-over-year, while capital expenditure rose from the prior quarter. The resulting free cash flow and margin weakened compared to the prior quarter but remained higher than a year ago.
- Compared to the immediately preceding quarter, free cash flow and margin declined. Compared to the same quarter one year earlier, all metrics improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$507.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$530.0M
Cash generated by operations before capital spending.
CapEx
$23.0M
Capital spending and related asset purchases.
FCF margin
19.3%
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 | $2.2B | $398.0M | $28.0M | $370.0M | 17.1% |
| 2023-12-31 | $2.3B | $485.0M | $29.0M | $456.0M | 19.8% |
| 2024-03-31 | $2.5B | $553.0M | $17.0M | $536.0M | 21.3% |
| 2024-06-30 | $2.6B | $530.0M | $23.0M | $507.0M | 19.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -322.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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.
Year-over-year free cash flow improvement
Free cash flow rose from the year-ago quarter, supported by higher revenue and operating cash flow, despite a slight increase in capital expenditure.
The year-over-year increase in free cash flow strengthened the company's cash generation capacity relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased sequentially but increased year-over-year, while capital expenditure rose from the prior quarter. The resulting free cash flow and margin weakened compared to the prior quarter but remained higher than a year ago.
Compared to the immediately preceding quarter, free cash flow and margin declined. Compared to the same quarter one year earlier, all metrics improved.
Monitor the trend in capital expenditure, which increased from the prior quarter.