Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from a negative prior quarter, driving free cash flow to a positive margin. Revenue was higher than both the preceding quarter and the same quarter last year, but free cash flow margin was lower than the year-ago level.
- Revenue was higher than the prior quarter, and operating cash flow improved from negative to positive, resulting in positive free cash flow and a positive free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin turning positive. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$636.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$698.3M
Cash generated by operations before capital spending.
CapEx
$62.0M
Capital spending and related asset purchases.
FCF margin
6.4%
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 | $10.5B | $2.0B | $40.3M | $2.0B | 19.1% |
| 2023-12-31 | $7.7B | -$153.4M | $47.6M | -$201.0M | -2.6% |
| 2024-03-31 | $9.1B | -$316.7M | $23.7M | -$340.4M | -3.7% |
| 2024-06-30 | $10.0B | $698.3M | $62.0M | $636.3M | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 47.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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
Operating cash flow shifted from negative in the prior quarter to positive in the current quarter, which was the primary factor behind the positive free cash flow and margin.
This recovery enabled the company to generate positive free cash flow after a negative prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow improved from negative to positive, resulting in positive free cash flow and a positive free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved, with free cash flow margin turning positive. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the level of capital expenditure relative to operating cash flow, as it was higher in the current quarter compared to both prior periods.