Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive after a negative prior quarter, though it was slightly lower than the same quarter last year. The cash conversion rate improved sequentially as operating cash flow swung from negative to positive, while revenue was higher than the prior quarter.
- Revenue was higher than both the prior quarter and the same quarter a year ago. Operating cash flow turned positive from negative in the prior quarter, but was lower than the year-ago level. Capital expenditure was higher than the prior quarter and lower year over year. Free cash flow moved from negative to positive sequentially, yet was slightly lower than the same quarter last year.
- Compared to the prior quarter, free cash flow improved sharply from a negative figure, driven by a swing in operating cash flow. Versus the same quarter a year ago, free cash flow was slightly lower, while the free cash flow margin narrowed.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$939.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$90.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$112.7M
Cash generated by operations before capital spending.
CapEx
$22.5M
Capital spending and related asset purchases.
FCF margin
10.9%
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 | $1.1B | -$3.7M | $26.7M | -$30.4M | -2.8% |
| 2023-12-31 | $1.6B | $940.3M | $16.6M | $923.7M | 59.2% |
| 2024-03-31 | $959.8M | -$28.7M | $15.3M | -$44.0M | -4.6% |
| 2024-06-30 | $825.3M | $112.7M | $22.5M | $90.1M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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
The swing from negative operating cash flow in the prior quarter to positive operating cash flow in the current quarter was the strongest observable driver of the sequential free cash flow improvement.
This was the primary reason free cash flow turned positive and the free cash flow margin strengthened sequentially.
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 same quarter a year ago. Operating cash flow turned positive from negative in the prior quarter, but was lower than the year-ago level. Capital expenditure was higher than the prior quarter and lower year over year. Free cash flow moved from negative to positive sequentially, yet was slightly lower than the same quarter last year.
Compared to the prior quarter, free cash flow improved sharply from a negative figure, driven by a swing in operating cash flow. Versus the same quarter a year ago, free cash flow was slightly lower, while the free cash flow margin narrowed.
Monitor whether operating cash flow can sustain its positive level relative to revenue in the coming periods.