Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved substantially in the current quarter despite lower revenue compared to both the prior quarter and the same quarter last year. Operating cash flow increased significantly, driving the improvement in cash conversion.
- Revenue was lower, but operating cash flow rose, resulting in a much higher free cash flow margin. Capital expenditure was also higher than both comparison periods, yet the increase in operating cash flow more than compensated.
- Compared to the prior quarter, revenue declined while operating cash flow and free cash flow increased, leading to a higher margin. Versus the same quarter a year ago, revenue was lower, but operating cash flow and free cash flow were both higher, with margin improved. The filing notes that revenue composition changed year-over-year, with Merchant Solutions and Issuer Solutions growing while Consumer Solutions was eliminated.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$629.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$808.8M
Cash generated by operations before capital spending.
CapEx
$179.2M
Capital spending and related asset purchases.
FCF margin
31.9%
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 | $2.5B | $426.8M | $169.8M | $257.0M | 10.4% |
| 2023-12-31 | $159.2M | $958.5M | $157.3M | $801.2M | 503.3% |
| 2024-03-31 | $2.4B | $529.6M | $145.4M | $384.1M | 15.9% |
| 2024-06-30 | $2.0B | $808.8M | $179.2M | $629.6M | 31.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 168.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.2B | 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 Growth
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, even as revenue decreased. This was the strongest contributor to the improvement in free cash flow and margin.
The higher operating cash flow was the primary factor behind the enhanced free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower, but operating cash flow rose, resulting in a much higher free cash flow margin. Capital expenditure was also higher than both comparison periods, yet the increase in operating cash flow more than compensated.
Compared to the prior quarter, revenue declined while operating cash flow and free cash flow increased, leading to a higher margin. Versus the same quarter a year ago, revenue was lower, but operating cash flow and free cash flow were both higher, with margin improved. The filing notes that revenue composition changed year-over-year, with Merchant Solutions and Issuer Solutions growing while Consumer Solutions was eliminated.
Monitor the trend of operating cash flow relative to revenue, as the current quarter's high conversion rate may not be sustainable if revenue continues to decline.