Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive this quarter after a negative prior quarter, driven by a large swing in operating cash flow. Revenue was stable versus both the prior quarter and the same quarter last year.
- Operating cash flow improved sharply from the prior quarter, leading to a positive free cash flow margin after a negative margin in the prior quarter. Capital expenditure was slightly higher than the prior quarter but lower than the same quarter last year.
- Compared to the prior quarter, free cash flow and operating cash flow both improved significantly, while revenue was stable. Versus the same quarter last year, free cash flow and operating cash flow were higher, and the free cash flow margin improved.
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
$462.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$489.1M
Cash generated by operations before capital spending.
CapEx
$26.7M
Capital spending and related asset purchases.
FCF margin
31.2%
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 | $1.4B | $354.1M | $39.2M | $314.9M | 21.8% |
| 2023-12-31 | $1.4B | $714.3M | $40.3M | $674.0M | 47.7% |
| 2024-03-31 | $1.5B | -$54.4M | $21.0M | -$75.4M | -5.1% |
| 2024-06-30 | $1.5B | $489.1M | $26.7M | $462.4M | 31.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 236.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.6M | 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 Swing
Operating cash flow moved from negative in the prior quarter to positive this quarter, which was the primary factor behind the improvement in free cash flow. Revenue remained stable, so the change was not driven by top-line movement.
This swing drove free cash flow from negative to positive and lifted the free cash flow margin above the level of the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved sharply from the prior quarter, leading to a positive free cash flow margin after a negative margin in the prior quarter. Capital expenditure was slightly higher than the prior quarter but lower than the same quarter last year.
Compared to the prior quarter, free cash flow and operating cash flow both improved significantly, while revenue was stable. Versus the same quarter last year, free cash flow and operating cash flow were higher, and the free cash flow margin improved.
Monitor whether operating cash flow can sustain its positive level in the coming quarter.