Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year, but free cash flow and its margin were lower. This reflects a significant decline in cash conversion efficiency during the period.
- Revenue increased while operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was slightly lower than both comparison periods, but the drop in operating cash flow was the dominant factor.
- Compared with the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year earlier, revenue was higher while all cash flow metrics were lower, resulting in a mixed overall performance.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$695.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$118.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$126.8M
Cash generated by operations before capital spending.
CapEx
$7.9M
Capital spending and related asset purchases.
FCF margin
4.9%
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 | $2.2B | $190.0M | $8.0M | $182.0M | 8.3% |
| 2023-12-31 | $2.3B | $158.4M | $10.7M | $147.6M | 6.5% |
| 2024-03-31 | $2.2B | $256.9M | $10.2M | $246.7M | 11.2% |
| 2024-06-30 | $2.4B | $126.8M | $7.9M | $118.8M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Cash Conversion Efficiency
Operating cash flow declined while revenue increased, compressing the free cash flow margin sharply from both the prior quarter and the year-ago quarter.
If this trend continues, it could further pressure free cash flow generation despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was slightly lower than both comparison periods, but the drop in operating cash flow was the dominant factor.
Compared with the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year earlier, revenue was higher while all cash flow metrics were lower, resulting in a mixed overall performance.
Monitor the trajectory of operating cash flow relative to revenue, as the current quarter's divergence weakened free cash flow generation.