Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and its margin improved sequentially and year-over-year, driven by stronger operating cash flow. Revenue remained stable compared to the prior quarter but increased from a year ago.
- Revenue was steady quarter over quarter, while operating cash flow rose. Capital expenditure increased slightly from the prior period but remained moderate, supporting a solid free cash flow conversion and a higher margin.
- Compared to the prior quarter, free cash flow and its margin were higher, with operating cash flow also improving. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin all strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$356.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$374.1M
Cash generated by operations before capital spending.
CapEx
$17.6M
Capital spending and related asset purchases.
FCF margin
24.8%
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 | $1.4B | $286.9M | $10.8M | $276.1M | 19.9% |
| 2023-12-31 | $1.4B | $391.4M | $13.1M | $378.3M | 26.7% |
| 2024-03-31 | $1.4B | $350.8M | $9.1M | $341.7M | 24.1% |
| 2024-06-30 | $1.4B | $374.1M | $17.6M | $356.5M | 24.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Stronger Operating Cash Flow
Operating cash flow rose both sequentially and year-over-year, providing the primary support for the increase in free cash flow and margin.
Sustained improvement in operating cash flow will be key to maintaining the higher free cash flow levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was steady quarter over quarter, while operating cash flow rose. Capital expenditure increased slightly from the prior period but remained moderate, supporting a solid free cash flow conversion and a higher margin.
Compared to the prior quarter, free cash flow and its margin were higher, with operating cash flow also improving. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and margin all strengthened.
Monitor capital expenditure as it increased from the prior quarter, which could affect future free cash flow conversion.