Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved relative to the preceding quarter and the same quarter last year. Free cash flow margin strengthened as capital expenditure remained relatively stable.
- Operating cash flow represented a higher proportion of revenue than in the prior quarter and the year-ago quarter, supporting a free cash flow margin that improved in both comparisons.
- Compared with the immediate preceding quarter, every metric showed improvement: revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were markedly higher, and free cash flow margin strengthened.
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
$445.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$588.0M
Cash generated by operations before capital spending.
CapEx
$143.0M
Capital spending and related asset purchases.
FCF margin
11.7%
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 | $3.7B | $583.0M | $146.0M | $437.0M | 11.7% |
| 2023-12-31 | $3.9B | $747.0M | $179.0M | $568.0M | 14.7% |
| 2024-03-31 | $3.7B | $522.0M | $145.0M | $377.0M | 10.1% |
| 2024-06-30 | $3.8B | $588.0M | $143.0M | $445.0M | 11.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.7B | 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 expansion
Operating cash flow increased from both the prior quarter and the year-ago quarter, while revenue growth was more modest. This drove a higher free cash flow margin despite capital expenditure remaining broadly stable.
Free cash flow margin improved sequentially and year-over-year, reflecting stronger cash generation from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow represented a higher proportion of revenue than in the prior quarter and the year-ago quarter, supporting a free cash flow margin that improved in both comparisons.
Compared with the immediate preceding quarter, every metric showed improvement: revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, operating cash flow and free cash flow were markedly higher, and free cash flow margin strengthened.
Monitor whether capital expenditure relative to operating cash flow remains at the current stable level.