Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter but weakened compared to the same quarter last year. The cash conversion rate, measured by free cash flow margin, rose sequentially yet remained below the year-ago level.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sequentially but fell year-over-year, while capital expenditure was slightly lower than the prior quarter and higher than a year ago. Free cash flow and free cash flow margin improved from the prior quarter but declined from the same quarter last year.
- Compared to the prior quarter, free cash flow and margin improved significantly. Compared to the same quarter one year earlier, free cash flow and margin were lower despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$260.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$279.7M
Cash generated by operations before capital spending.
CapEx
$19.3M
Capital spending and related asset purchases.
FCF margin
7.1%
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 | $3.2B | $261.0M | $19.7M | $241.2M | 7.5% |
| 2023-12-31 | $3.4B | $423.8M | $22.1M | $401.7M | 11.7% |
| 2024-03-31 | $3.4B | $132.3M | $20.3M | $112.0M | 3.3% |
| 2024-06-30 | $3.7B | $279.7M | $19.3M | $260.4M | 7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 variability
Operating cash flow rose from the prior quarter but fell from the year-ago quarter, while revenue increased in both comparisons. This divergence between cash generation and revenue growth is the strongest observable driver of the free cash flow change.
If operating cash flow does not keep pace with revenue expansion, free cash flow margin may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sequentially but fell year-over-year, while capital expenditure was slightly lower than the prior quarter and higher than a year ago. Free cash flow and free cash flow margin improved from the prior quarter but declined from the same quarter last year.
Compared to the prior quarter, free cash flow and margin improved significantly. Compared to the same quarter one year earlier, free cash flow and margin were lower despite higher revenue.
Monitor the trend in free cash flow margin relative to revenue growth in upcoming quarters.