Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, cash conversion weakened as revenue grew from the prior quarter yet operating cash flow declined, resulting in lower free cash flow and margin. Compared with the same quarter last year, free cash flow and margin were slightly lower despite stable revenue.
- Revenue increased from the immediate prior quarter, but operating cash flow decreased, causing free cash flow to fall and free cash flow margin to narrow. Capital expenditure remained relatively stable, so the decline in conversion was driven entirely by lower operating cash generation relative to revenue.
- Compared with the prior quarter, free cash flow and margin were lower. Versus the same quarter one year earlier, free cash flow and margin were also slightly lower, while revenue was roughly stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$516.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$49.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$77.7M
Cash generated by operations before capital spending.
CapEx
$28.0M
Capital spending and related asset purchases.
FCF margin
5.0%
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 | $1.1B | $140.1M | $23.8M | $116.3M | 10.9% |
| 2023-12-31 | $1.1B | $316.9M | $51.3M | $265.6M | 25.0% |
| 2024-03-31 | $889.3M | $111.9M | $26.8M | $85.1M | 9.6% |
| 2024-06-30 | $998.2M | $77.7M | $28.0M | $49.7M | 5.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | 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 Decline
Revenue rose from the prior quarter, yet operating cash flow contracted, causing free cash flow to fall and margin to narrow. This pattern suggests a weakening in cash conversion efficiency during the period.
If operating cash flow does not recover, free cash flow generation may remain constrained even if revenue grows.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the immediate prior quarter, but operating cash flow decreased, causing free cash flow to fall and free cash flow margin to narrow. Capital expenditure remained relatively stable, so the decline in conversion was driven entirely by lower operating cash generation relative to revenue.
Compared with the prior quarter, free cash flow and margin were lower. Versus the same quarter one year earlier, free cash flow and margin were also slightly lower, while revenue was roughly stable.
Monitor the trend in operating cash flow, as it weakened sequentially despite higher revenue and became the primary drag on free cash flow.