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 margin improved compared to the same quarter last year, though it weakened from the prior quarter. Operating cash flow was higher than a year ago while capital expenditure was lower, contributing to the year-over-year improvement.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow decreased from the prior quarter but increased from a year ago. Capital expenditure followed a similar pattern. Free cash flow margin stood between the prior quarter's higher level and the year-ago quarter's lower level.
- Compared to the immediately preceding quarter, all metrics declined. Compared to the same quarter one year earlier, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$195.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$325.6M
Cash generated by operations before capital spending.
CapEx
$130.2M
Capital spending and related asset purchases.
FCF margin
9.4%
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 |
|---|---|---|---|---|---|
| 2023-10-01 | $3.0B | $515.7M | $218.1M | $297.6M | 9.8% |
| 2023-12-31 | $2.7B | $757.6M | $222.5M | $535.1M | 20.1% |
| 2024-03-31 | $3.3B | $569.1M | $213.3M | $355.8M | 10.9% |
| 2024-06-30 | $2.1B | $325.6M | $130.2M | $195.5M | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | 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.
Year-over-Year Margin Improvement
Free cash flow margin rose compared to the same quarter last year, supported by higher operating cash flow and lower capital expenditure.
This improvement indicates a more efficient cash conversion relative to revenue compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow decreased from the prior quarter but increased from a year ago. Capital expenditure followed a similar pattern. Free cash flow margin stood between the prior quarter's higher level and the year-ago quarter's lower level.
Compared to the immediately preceding quarter, all metrics declined. Compared to the same quarter one year earlier, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was lower.
Monitor the trend in operating cash flow relative to revenue, as the current quarter's improvement over last year occurred despite a lower revenue base.