Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter a year ago. The free cash flow margin strengthened significantly, reflecting a higher proportion of revenue converted to free cash flow.
- Operating cash flow increased more than revenue, while capital expenditure decreased relative to the prior quarter but was higher than a year ago. The combination of higher operating cash flow and lower capital expenditure sequentially drove free cash flow and its margin higher.
- Compared to the prior quarter, all key metrics improved: revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and its margin were higher. Versus the same quarter a year ago, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was slightly higher but free cash flow margin still improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$972.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$342.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$397.0M
Cash generated by operations before capital spending.
CapEx
$55.0M
Capital spending and related asset purchases.
FCF margin
18.2%
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 | $1.7B | $191.0M | $59.0M | $132.0M | 8.0% |
| 2023-12-31 | $1.7B | $458.0M | $55.0M | $403.0M | 23.3% |
| 2024-03-31 | $1.8B | $177.0M | $82.0M | $95.0M | 5.2% |
| 2024-06-30 | $1.9B | $397.0M | $55.0M | $342.0M | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | 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 uplift
Operating cash flow grew at a faster pace than revenue, with sequential and year-over-year comparisons showing substantial improvement. The filing attributed the increase to higher operating results and favorable working capital changes.
This driver was the primary reason for the stronger free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased more than revenue, while capital expenditure decreased relative to the prior quarter but was higher than a year ago. The combination of higher operating cash flow and lower capital expenditure sequentially drove free cash flow and its margin higher.
Compared to the prior quarter, all key metrics improved: revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and its margin were higher. Versus the same quarter a year ago, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was slightly higher but free cash flow margin still improved.
Monitor working capital components, particularly changes in accounts payable and receivables, which were cited as favorable factors in the filing.