Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly versus both periods.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased relative to both comparison periods, while capital expenditure decreased from the prior quarter and was lower than a year ago. The combination of higher operating cash flow and lower capital expenditure drove free cash flow higher and expanded the free cash flow margin.
- Compared to the prior quarter, revenue was slightly lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$517.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$545.2M
Cash generated by operations before capital spending.
CapEx
$27.6M
Capital spending and related asset purchases.
FCF margin
1733.5%
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 | $28.0M | $408.4M | $18.6M | $389.9M | 1391.4% |
| 2023-12-31 | $30.4M | $364.5M | $71.0M | $293.5M | 966.2% |
| 2024-03-31 | $30.1M | $465.6M | $35.1M | $430.5M | 1427.9% |
| 2024-06-30 | $29.9M | $545.2M | $27.6M | $517.6M | 1733.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 278.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 92.6% | 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 increased compared to both the prior quarter and the same quarter last year, providing the primary support for the improvement in free cash flow.
Higher operating cash flow, combined with lower capital expenditure, resulted in a stronger free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased relative to both comparison periods, while capital expenditure decreased from the prior quarter and was lower than a year ago. The combination of higher operating cash flow and lower capital expenditure drove free cash flow higher and expanded the free cash flow margin.
Compared to the prior quarter, revenue was slightly lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in capital expenditure, which decreased from both the prior quarter and the year-ago quarter.