Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose while capital expenditure increased moderately. Compared to the same quarter last year, free cash flow was lower despite a slight decline in revenue.
- Revenue was stable sequentially, while operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, partially offsetting the cash conversion improvement.
- Compared to the prior quarter, free cash flow and margin improved as operating cash flow increased. Versus the same quarter last year, free cash flow and margin weakened, driven by lower operating cash flow and higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$571.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$687.0M
Cash generated by operations before capital spending.
CapEx
$116.0M
Capital spending and related asset purchases.
FCF margin
14.2%
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 | $4.0B | $982.0M | $126.0M | $856.0M | 21.2% |
| 2023-12-31 | $4.0B | $1.0B | $131.0M | $908.0M | 22.8% |
| 2024-03-31 | $4.0B | $589.0M | $95.0M | $494.0M | 12.4% |
| 2024-06-30 | $4.0B | $687.0M | $116.0M | $571.0M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow increased from the prior quarter, which was the strongest observable driver of the sequential free cash flow improvement. This occurred even as revenue remained essentially unchanged.
The higher operating cash flow directly lifted free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, while operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, partially offsetting the cash conversion improvement.
Compared to the prior quarter, free cash flow and margin improved as operating cash flow increased. Versus the same quarter last year, free cash flow and margin weakened, driven by lower operating cash flow and higher capital expenditure.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending this quarter reduced free cash flow conversion.