Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was stable sequentially and higher year-over-year. Operating cash flow increased from the prior quarter and was slightly above the year-ago level, while capital expenditure declined year-over-year, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and free cash flow margin were higher, driven by a larger increase in operating cash flow relative to capital expenditure. Versus the same quarter last year, free cash flow and margin were also higher, as operating cash flow rose while capital expenditure fell.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$675.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$130.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$267.5M
Cash generated by operations before capital spending.
CapEx
$136.7M
Capital spending and related asset purchases.
FCF margin
9.1%
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 | $1.3B | $381.7M | $134.3M | $247.4M | 18.8% |
| 2023-12-31 | $1.3B | $322.1M | $145.7M | $176.4M | 13.3% |
| 2024-03-31 | $1.4B | $252.7M | $131.9M | $120.8M | 8.7% |
| 2024-06-30 | $1.4B | $267.5M | $136.7M | $130.8M | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 79.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | 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 Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, providing the primary support for the improvement in free cash flow. This occurred even as revenue remained flat sequentially.
Higher operating cash flow directly lifted free cash flow and margin without requiring additional capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year-over-year. Operating cash flow increased from the prior quarter and was slightly above the year-ago level, while capital expenditure declined year-over-year, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow and free cash flow margin were higher, driven by a larger increase in operating cash flow relative to capital expenditure. Versus the same quarter last year, free cash flow and margin were also higher, as operating cash flow rose while capital expenditure fell.
Monitor the trend in capital expenditure, which decreased year-over-year but increased sequentially, as its trajectory may affect future free cash flow conversion.