Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved meaningfully compared to both the preceding quarter and the same quarter last year. The increase was supported by higher operating cash flow and revenue, along with a sequential decline in capital expenditure.
- Cash conversion strengthened as a larger portion of revenue was translated into free cash flow. Operating cash flow grew while capital expenditure decreased sequentially, and the year-over-year comparison showed a similar pattern of higher operating cash generation.
- Compared to the preceding quarter, free cash flow and margin improved substantially, driven by higher revenue and operating cash flow combined with lower capital spending. Versus the same quarter a year ago, free cash flow and margin were also higher, with revenue and operating cash flow up while capital expenditure was slightly above the prior-year level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$993.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$348.0M
Capital spending and related asset purchases.
FCF margin
19.4%
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 | $4.9B | $1.6B | $355.0M | $1.2B | 24.7% |
| 2023-12-31 | $4.9B | $1.6B | $354.0M | $1.2B | 25.2% |
| 2024-03-31 | $4.9B | $831.0M | $420.0M | $411.0M | 8.4% |
| 2024-06-30 | $5.1B | $1.3B | $348.0M | $993.0M | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | 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 Improvement
The primary driver was a notable increase in operating cash flow relative to revenue, which lifted free cash flow and margin. This improvement helped the company achieve a higher cash conversion rate.
The stronger cash generation enhanced the company's financial flexibility without relying on external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened as a larger portion of revenue was translated into free cash flow. Operating cash flow grew while capital expenditure decreased sequentially, and the year-over-year comparison showed a similar pattern of higher operating cash generation.
Compared to the preceding quarter, free cash flow and margin improved substantially, driven by higher revenue and operating cash flow combined with lower capital spending. Versus the same quarter a year ago, free cash flow and margin were also higher, with revenue and operating cash flow up while capital expenditure was slightly above the prior-year level.
Monitor capital expenditure trends, as they declined sequentially but remained slightly above the level of the same quarter last year, and future changes could influence free cash flow generation.