Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable quarter over quarter and slightly higher year over year. Free cash flow and its margin weakened versus both the prior quarter and the same quarter last year, driven by lower operating cash flow.
- Operating cash flow fell while revenue held steady, reducing the cash conversion rate. Capital expenditure declined but was not enough to offset the drop in operating cash flow, resulting in lower free cash flow and a narrower margin.
- Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter a year earlier, operating cash flow and free cash flow were also lower, though revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$278.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$367.0M
Cash generated by operations before capital spending.
CapEx
$89.0M
Capital spending and related asset purchases.
FCF margin
10.8%
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 | $2.5B | $862.0M | $85.0M | $777.0M | 31.1% |
| 2023-12-31 | $2.6B | $122.0M | $126.0M | -$4.0M | -0.2% |
| 2024-03-31 | $2.6B | $615.0M | $143.0M | $472.0M | 18.5% |
| 2024-06-30 | $2.6B | $367.0M | $89.0M | $278.0M | 10.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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 Decline
Operating cash flow decreased significantly from both the prior quarter and the year-ago quarter, while revenue remained relatively stable. This shift in cash conversion was the strongest observable driver of the lower free cash flow.
The lower operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell while revenue held steady, reducing the cash conversion rate. Capital expenditure declined but was not enough to offset the drop in operating cash flow, resulting in lower free cash flow and a narrower margin.
Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter a year earlier, operating cash flow and free cash flow were also lower, though revenue was slightly higher.
Monitor the trajectory of operating cash flow, as its decline was the primary factor behind the weaker free cash flow.