Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sequentially and year over year, driven by stronger operating cash flow. Revenue was stable compared to the prior quarter and higher than a year ago.
- Revenue was unchanged from the previous quarter and higher than the same quarter last year. Operating cash flow increased substantially from both periods, while capital expenditure was lower year over year but slightly higher sequentially. As a result, free cash flow and free cash flow margin both increased.
- Compared to the prior quarter, free cash flow and margin were higher, reflecting a significant increase in operating cash flow. Versus the year-ago quarter, free cash flow and margin also improved, aided by higher operating cash flow and reduced capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$672.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$889.0M
Cash generated by operations before capital spending.
CapEx
$217.0M
Capital spending and related asset purchases.
FCF margin
17.4%
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 | $3.5B | -$408.0M | $295.0M | -$703.0M | -20.0% |
| 2023-12-31 | $4.3B | $1.3B | $232.0M | $1.1B | 26.0% |
| 2024-03-31 | $3.9B | $534.0M | $175.0M | $359.0M | 9.1% |
| 2024-06-30 | $3.9B | $889.0M | $217.0M | $672.0M | 17.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -235.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | 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 Growth
Operating cash flow was notably higher than both the preceding quarter and the year-ago quarter, indicating improved cash generation.
This was the primary contributor to the increase in free cash flow and the expansion of the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the previous quarter and higher than the same quarter last year. Operating cash flow increased substantially from both periods, while capital expenditure was lower year over year but slightly higher sequentially. As a result, free cash flow and free cash flow margin both increased.
Compared to the prior quarter, free cash flow and margin were higher, reflecting a significant increase in operating cash flow. Versus the year-ago quarter, free cash flow and margin also improved, aided by higher operating cash flow and reduced capital expenditure.
Monitor capital expenditure trends, which increased from the prior quarter, and the company's cash position, which decreased from the prior year end with a noted rebalancing of cash allocations.