Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow was positive, with operating cash flow exceeding capital expenditure. The free cash flow margin improved compared to the same quarter last year but weakened from the prior quarter.
- Revenue was higher than the prior quarter, and operating cash flow also increased, resulting in higher free cash flow despite a slight increase in capital expenditure. The free cash flow margin decreased as revenue growth outpaced the increase in free cash flow.
- Compared to the immediately preceding quarter, revenue and free cash flow were higher, but the free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were significantly higher, shifting from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$848.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$159.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$187.3M
Cash generated by operations before capital spending.
CapEx
$27.4M
Capital spending and related asset purchases.
FCF margin
16.1%
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 |
|---|---|---|---|---|---|
| 2023-10-01 | $1.5B | $215.7M | $48.3M | $167.4M | 11.1% |
| 2023-12-31 | $1.3B | $390.7M | $24.9M | $365.8M | 28.4% |
| 2024-03-31 | $757.3M | $177.8M | $22.1M | $155.7M | 20.6% |
| 2024-06-30 | $995.3M | $187.3M | $27.4M | $159.9M | 16.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | 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.
Operating cash flow recovery
Operating cash flow was substantially higher than the same quarter last year, while capital expenditure was lower, driving free cash flow from negative to positive.
This strengthened free cash flow margin year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow also increased, resulting in higher free cash flow despite a slight increase in capital expenditure. The free cash flow margin decreased as revenue growth outpaced the increase in free cash flow.
Compared to the immediately preceding quarter, revenue and free cash flow were higher, but the free cash flow margin was lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow and free cash flow were significantly higher, shifting from negative to positive.
Monitor the free cash flow margin trend as revenue growth may outpace cash generation.