Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter showed a strong improvement in cash generation with operating cash flow turning positive and free cash flow margin rising. Revenue was higher compared to both the prior quarter and the same quarter last year.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow and a free cash flow margin that improved from the prior quarter and year-ago period. The conversion of revenue into cash was notably stronger.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow shifted from negative to positive, and the free cash flow margin improved. Versus the same quarter one year earlier, all cash flow metrics were higher and the margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$674.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$798.8M
Cash generated by operations before capital spending.
CapEx
$124.7M
Capital spending and related asset purchases.
FCF margin
21.2%
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 | $3.1B | $661.2M | $136.8M | $524.4M | 16.8% |
| 2023-12-31 | $3.1B | $485.2M | $159.0M | $326.2M | 10.4% |
| 2024-03-31 | $3.1B | -$134.8M | $121.0M | -$255.9M | -8.3% |
| 2024-06-30 | $3.2B | $798.8M | $124.7M | $674.1M | 21.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 302.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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 turned positive after a negative prior quarter, driving a substantial improvement in free cash flow.
This recovery was the primary factor behind the quarter's strong free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow and a free cash flow margin that improved from the prior quarter and year-ago period. The conversion of revenue into cash was notably stronger.
Compared to the immediately preceding quarter, operating cash flow and free cash flow shifted from negative to positive, and the free cash flow margin improved. Versus the same quarter one year earlier, all cash flow metrics were higher and the margin strengthened.
Monitor the trajectory of operating cash flow given the significant swing from the prior quarter.