Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased from the prior quarter, supported by higher operating cash flow and stable capital expenditure. Compared with the same quarter last year, free cash flow was lower as operating cash flow declined despite reduced capital spending.
- Revenue rose from the prior quarter, and a larger share converted into operating cash flow, boosting free cash flow and its margin. Capital expenditure remained modest relative to cash flow.
- Relative to the immediately preceding quarter, free cash flow and margin improved. Versus the same quarter one year ago, free cash flow and margin weakened, primarily due to lower operating cash flow.
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
$406.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$421.0M
Cash generated by operations before capital spending.
CapEx
$15.0M
Capital spending and related asset purchases.
FCF margin
13.8%
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 | $2.7B | $687.0M | $35.0M | $652.0M | 24.4% |
| 2023-12-31 | $2.6B | $465.0M | $42.0M | $423.0M | 16.2% |
| 2024-03-31 | $2.6B | $346.0M | $16.0M | $330.0M | 12.8% |
| 2024-06-30 | $3.0B | $421.0M | $15.0M | $406.0M | 13.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 Trend
The quarter-over-quarter increase in operating cash flow was the strongest observable factor behind free cash flow improvement, but the year-over-year decline signals potential volatility.
Sustained operating cash flow growth is critical for maintaining free cash flow levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from the prior quarter, and a larger share converted into operating cash flow, boosting free cash flow and its margin. Capital expenditure remained modest relative to cash flow.
Relative to the immediately preceding quarter, free cash flow and margin improved. Versus the same quarter one year ago, free cash flow and margin weakened, primarily due to lower operating cash flow.
Monitor whether operating cash flow can sustain its sequential improvement in the coming quarters.