Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow was positive and the margin was high, driven by strong operating cash flow. Revenue was slightly higher than both the prior quarter and the same quarter last year.
- Operating cash flow exceeded revenue, resulting in a free cash flow margin well above revenue. Capital expenditure was modest relative to operating cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved. Compared to the same quarter one year earlier, the company shifted from negative free cash flow to positive, a significant improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$61.0M
Capital spending and related asset purchases.
FCF margin
329.4%
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 | $351.0M | $1.8B | $52.0M | $1.7B | 489.7% |
| 2023-12-31 | $6.4B | $1.6B | $64.0M | $1.6B | 24.4% |
| 2024-03-31 | $352.0M | $1.1B | $50.0M | $1.0B | 297.4% |
| 2024-06-30 | $364.0M | $1.3B | $61.0M | $1.2B | 329.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.8% | 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 turned from negative in the year-ago quarter to positive in the current quarter, and also increased sequentially.
This drove a substantial improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue, resulting in a free cash flow margin well above revenue. Capital expenditure was modest relative to operating cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved. Compared to the same quarter one year earlier, the company shifted from negative free cash flow to positive, a significant improvement.
Monitor the sustainability of the operating cash flow level relative to revenue.