Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened in the current quarter compared to both the prior quarter and the same quarter a year earlier. Operating cash flow and free cash flow margin both declined, while revenue was slightly higher.
- Revenue was slightly higher than both the prior and year-ago quarters, but operating cash flow decreased, leading to a lower free cash flow and a lower free cash flow margin. Capital expenditure was also lower than both comparison periods, which partially offset the cash flow decline.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, with operating cash flow decreasing and capital expenditure also lower. Versus the year-ago quarter, free cash flow and margin were slightly lower, while operating cash flow decreased and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$335.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$411.0M
Cash generated by operations before capital spending.
CapEx
$76.0M
Capital spending and related asset purchases.
FCF margin
7.8%
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 | $4.2B | $523.0M | $125.0M | $398.0M | 9.5% |
| 2023-12-31 | $4.0B | $604.0M | $127.0M | $477.0M | 11.9% |
| 2024-03-31 | $4.2B | $661.0M | $119.0M | $542.0M | 12.8% |
| 2024-06-30 | $4.3B | $411.0M | $76.0M | $335.0M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | 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 Decrease
Operating cash flow was lower than both the prior quarter and the year-ago quarter, even though revenue increased slightly. This decline was the primary observable factor behind the reduction in free cash flow and margin.
The reduction in operating cash flow directly weakened free cash flow and free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than both the prior and year-ago quarters, but operating cash flow decreased, leading to a lower free cash flow and a lower free cash flow margin. Capital expenditure was also lower than both comparison periods, which partially offset the cash flow decline.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, with operating cash flow decreasing and capital expenditure also lower. Versus the year-ago quarter, free cash flow and margin were slightly lower, while operating cash flow decreased and capital expenditure was lower.
Monitor the trend in operating cash flow, which declined markedly from the prior quarter and also fell below the year-ago level.