Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to the prior quarter, while operating cash flow improved, leading to a higher free cash flow and an improved free cash flow margin. Free cash flow and margin also increased compared to the same quarter last year.
- Operating cash flow rose relative to revenue, and capital expenditure increased modestly, resulting in higher free cash flow and a stronger free cash flow margin.
- Compared with the prior quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin all improved. Versus the year-ago quarter, revenue was higher and operating cash flow, free cash flow, and margin were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$497.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$127.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$150.7M
Cash generated by operations before capital spending.
CapEx
$23.5M
Capital spending and related asset purchases.
FCF margin
11.6%
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 |
|---|---|---|---|---|---|
| 2023-06-18 | $1.0B | $127.6M | $18.9M | $108.7M | 10.6% |
| 2023-09-10 | $1.0B | $179.8M | $21.3M | $158.5M | 15.4% |
| 2024-03-24 | $1.1B | $123.5M | $20.2M | $103.3M | 9.5% |
| 2024-06-16 | $1.1B | $150.7M | $23.5M | $127.2M | 11.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 Improvement
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, supporting a higher free cash flow despite a moderate rise in capital expenditure.
This improvement drove the free cash flow margin higher, reflecting stronger cash generation from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to revenue, and capital expenditure increased modestly, resulting in higher free cash flow and a stronger free cash flow margin.
Compared with the prior quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin all improved. Versus the year-ago quarter, revenue was higher and operating cash flow, free cash flow, and margin were also higher.
Monitor working capital efficiency, as the filing highlights historically faster receivable collection and inventory turns than payment terms.