Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Free cash flow improved significantly versus both periods, driven by stronger operating cash flow.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that improved from both the prior quarter and the year-ago quarter. The conversion of revenue into free cash flow strengthened notably.
- 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 a modest rise in capital expenditure. Versus the same quarter last year, both revenue and operating cash flow were higher, leading to a higher free cash flow and margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$998.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$92.0M
Capital spending and related asset purchases.
FCF margin
22.8%
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 | $4.1B | -$643.0M | $169.0M | -$812.0M | -19.9% |
| 2023-12-31 | $4.1B | $415.0M | $77.0M | $338.0M | 8.2% |
| 2024-03-31 | $4.4B | $743.0M | $82.0M | $661.0M | 15.1% |
| 2024-06-30 | $4.4B | $1.1B | $92.0M | $998.0M | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 303.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 Strength
Operating cash flow was the strongest observable driver, rising from both the prior quarter and the year-ago quarter, while capital expenditure increased only modestly. This combination directly lifted free cash flow and margin.
The higher operating cash flow was the primary factor behind the improved free cash flow generation this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that improved from both the prior quarter and the year-ago quarter. The conversion of revenue into free cash flow strengthened notably.
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 a modest rise in capital expenditure. Versus the same quarter last year, both revenue and operating cash flow were higher, leading to a higher free cash flow and margin.
Monitor the trend in capital expenditure relative to operating cash flow, as the current quarter's improvement was supported by a proportionally smaller increase in capex.