Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable, while operating cash flow improved significantly from the prior quarter, resulting in a shift to positive free cash flow. Free cash flow margin also strengthened compared to both the previous quarter and the same quarter a year earlier.
- Operating cash flow increased from the prior quarter, while capital expenditure declined, leading to a substantial improvement in free cash flow. The free cash flow margin turned positive, reflecting a stronger cash conversion rate relative to revenue.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter a year ago, operating cash flow was slightly lower, but lower capital expenditure resulted in higher free cash flow and a stronger margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$155.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$237.0M
Cash generated by operations before capital spending.
CapEx
$82.0M
Capital spending and related asset purchases.
FCF margin
5.4%
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 | $2.8B | $420.0M | $100.0M | $320.0M | 11.3% |
| 2023-12-31 | $2.7B | $660.0M | $113.0M | $547.0M | 20.2% |
| 2024-03-31 | $2.9B | $99.0M | $118.0M | -$19.0M | -0.7% |
| 2024-06-30 | $2.9B | $237.0M | $82.0M | $155.0M | 5.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.7B | 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 Improvement
Operating cash flow rose substantially from the prior quarter, more than offsetting a reduction in capital expenditure, which flipped free cash flow positive and lifted the margin.
The improvement in operating cash flow was the primary factor behind the swing to positive free cash flow and the stronger margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from the prior quarter, while capital expenditure declined, leading to a substantial improvement in free cash flow. The free cash flow margin turned positive, reflecting a stronger cash conversion rate relative to revenue.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter a year ago, operating cash flow was slightly lower, but lower capital expenditure resulted in higher free cash flow and a stronger margin.
Monitor the level of capital expenditure, as it decreased from both the prior quarter and the year-ago period, to assess whether this trend is sustainable.