Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Free cash flow and its margin improved compared to a year ago but weakened relative to the immediate prior quarter.
- Operating cash flow decreased from the previous quarter while capital expenditure increased, leading to lower free cash flow. Compared to the year-ago quarter, operating cash flow rose substantially and free cash flow improved despite higher capital spending.
- Compared to the previous quarter, free cash flow margin contracted as operating cash flow declined and capital expenditure grew. Versus the year-ago quarter, both free cash flow and its margin expanded significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$616.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$911.0M
Cash generated by operations before capital spending.
CapEx
$295.0M
Capital spending and related asset purchases.
FCF margin
6.8%
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 | $9.3B | $1.8B | $222.0M | $1.6B | 17.2% |
| 2023-12-31 | $8.5B | $3.1B | $250.0M | $2.9B | 33.8% |
| 2024-03-31 | $9.0B | $994.0M | $204.0M | $790.0M | 8.8% |
| 2024-06-30 | $9.1B | $911.0M | $295.0M | $616.0M | 6.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 48.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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.
Year-over-year free cash flow improvement
The company's filing discusses its lean operating model and focus on services and readiness. Operating cash flow increased substantially compared to the same quarter last year, more than offsetting higher capital spending and driving free cash flow higher with an expanded margin.
The improved cash generation supports the company's capacity to fund operations and invest in its strategic initiatives.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased from the previous quarter while capital expenditure increased, leading to lower free cash flow. Compared to the year-ago quarter, operating cash flow rose substantially and free cash flow improved despite higher capital spending.
Compared to the previous quarter, free cash flow margin contracted as operating cash flow declined and capital expenditure grew. Versus the year-ago quarter, both free cash flow and its margin expanded significantly.
Monitor the trend in capital expenditure, which rose notably from both the prior quarter and the same quarter last year.