Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow rose from the prior quarter and the year-ago quarter, supported by higher operating cash flow and lower capital spending. The free cash flow margin improved versus both comparison periods.
- Revenue was stable versus the prior quarter and lower than a year earlier. Operating cash flow increased sequentially and year-over-year, while capital expenditure declined from both prior periods, resulting in higher free cash flow and an improved free cash flow margin.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin also improved, despite revenue being lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$167.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$203.7M
Cash generated by operations before capital spending.
CapEx
$35.8M
Capital spending and related asset purchases.
FCF margin
8.6%
The share of revenue converted into free cash flow.
TTM FCF yield
3.8%
TTM FCF divided by market capitalization.
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 | $2.0B | $383.5M | $37.7M | $345.8M | 17.7% |
| 2023-12-31 | $1.9B | $516.4M | $57.3M | $459.1M | 24.1% |
| 2024-03-31 | $1.9B | $166.6M | $40.0M | $126.5M | 6.7% |
| 2024-06-30 | $1.9B | $203.7M | $35.8M | $167.8M | 8.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Stronger Cash Generation
Operating cash flow rose sequentially and year-over-year, while capital expenditure declined. This combination drove a higher free cash flow and free cash flow margin.
The improvement in operating cash flow relative to prior periods was the strongest observable factor behind the free cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and lower than a year earlier. Operating cash flow increased sequentially and year-over-year, while capital expenditure declined from both prior periods, resulting in higher free cash flow and an improved free cash flow margin.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin also improved, despite revenue being lower.
Monitor whether operating cash flow can sustain its improvement relative to the prior and year-ago quarters, given revenue was lower year-over-year.
Valuation context
A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.
| Market capitalization | $28.8B | Used as the denominator for FCF yield. |
| TTM FCF yield | 3.8% | TTM free cash flow divided by market capitalization. |
| EV / TTM FCF | n/a | A quick valuation bridge, not a full DCF. |
Peer context
Free cash flow quality is easier to read against related public companies.