Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sequentially but were lower compared to the same quarter last year. Revenue remained stable sequentially and was higher than the year-ago quarter.
- Revenue was stable relative to the prior quarter. Operating cash flow improved while capital expenditure was lower, leading to higher free cash flow and a stronger free cash flow margin.
- Compared to the prior quarter, free cash flow margin strengthened. Versus the same quarter one year earlier, both free cash flow and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$875.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$268.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$360.0M
Cash generated by operations before capital spending.
CapEx
$92.0M
Capital spending and related asset purchases.
FCF margin
11.2%
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 | $2.3B | $207.0M | $105.0M | $102.0M | 4.4% |
| 2023-12-31 | $2.3B | $527.0M | $72.0M | $455.0M | 19.9% |
| 2024-03-31 | $2.4B | $154.0M | $104.0M | $50.0M | 2.1% |
| 2024-06-30 | $2.4B | $360.0M | $92.0M | $268.0M | 11.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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.
Sequential Operating Cash Flow Improvement
Operating cash flow was higher than the prior quarter, while capital expenditure was lower, resulting in a notable increase in free cash flow.
This improvement drove the sequential increase in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter. Operating cash flow improved while capital expenditure was lower, leading to higher free cash flow and a stronger free cash flow margin.
Compared to the prior quarter, free cash flow margin strengthened. Versus the same quarter one year earlier, both free cash flow and margin weakened.
The filing notes that timing of cash collections affected operating cash flow for the six-month period; this remains a factor to monitor for future quarters. Additionally, capital expenditure was lower in both comparisons.