Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from the prior quarter, driven by a meaningful increase in operating cash flow. The margin improved substantially versus both the previous quarter and the same quarter last year.
- Revenue was higher quarter over quarter, and operating cash flow rose more than proportionally, widening the cash conversion. Capital expenditure was lower than the prior quarter but slightly higher than the year-ago period, resulting in a stronger free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow shifted from negative to positive and the margin strengthened markedly. Versus the same quarter one year earlier, free cash flow and margin both improved, while operating cash flow was higher and capital expenditure was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$326.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$264.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$912.0M
Cash generated by operations before capital spending.
CapEx
$648.0M
Capital spending and related asset purchases.
FCF margin
12.2%
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 | $2.1B | $785.0M | $617.0M | $168.0M | 8.2% |
| 2023-12-31 | $2.1B | $999.0M | $996.0M | $3.0M | 0.1% |
| 2024-03-31 | $2.1B | $598.0M | $707.0M | -$109.0M | -5.1% |
| 2024-06-30 | $2.2B | $912.0M | $648.0M | $264.0M | 12.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 30.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.5B | 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 increased notably from the prior quarter and also rose compared to the year-ago period, providing the primary lift to free cash flow.
This improvement drove the swing from a negative free cash flow margin to a positive one.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher quarter over quarter, and operating cash flow rose more than proportionally, widening the cash conversion. Capital expenditure was lower than the prior quarter but slightly higher than the year-ago period, resulting in a stronger free cash flow margin.
Compared to the immediately preceding quarter, free cash flow shifted from negative to positive and the margin strengthened markedly. Versus the same quarter one year earlier, free cash flow and margin both improved, while operating cash flow was higher and capital expenditure was stable.
Monitor the trajectory of capital expenditure relative to operating cash flow in subsequent filings.