Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but operating cash flow decreased, leading to lower free cash flow and free cash flow margin. The filing notes that operating cash flow and debt issuance were significant sources of cash for the fiscal year, offset by share repurchases.
- Operating cash flow was lower despite higher revenue, and capital expenditure also decreased. The resulting free cash flow margin contracted, showing that a smaller proportion of revenue was converted to free cash flow.
- Compared to the immediately preceding quarter, revenue rose while operating cash flow and free cash flow fell, leading to a lower free cash flow margin. The same pattern held relative to the year-ago quarter, with revenue higher but all cash flow metrics lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$831.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$892.6M
Cash generated by operations before capital spending.
CapEx
$60.7M
Capital spending and related asset purchases.
FCF margin
32.4%
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 | $2.4B | $883.7M | $68.0M | $815.7M | 34.0% |
| 2023-12-31 | $2.5B | $622.2M | $76.8M | $545.4M | 21.9% |
| 2024-03-31 | $2.4B | $910.0M | $71.8M | $838.2M | 35.5% |
| 2024-06-30 | $2.6B | $892.6M | $60.7M | $831.9M | 32.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.9B | 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 Efficiency
Revenue increased but operating cash flow declined, suggesting a shift in cash conversion dynamics. The lower free cash flow margin reflects this change.
If operating cash flow does not keep pace with revenue growth, free cash flow may continue to be pressured.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower despite higher revenue, and capital expenditure also decreased. The resulting free cash flow margin contracted, showing that a smaller proportion of revenue was converted to free cash flow.
Compared to the immediately preceding quarter, revenue rose while operating cash flow and free cash flow fell, leading to a lower free cash flow margin. The same pattern held relative to the year-ago quarter, with revenue higher but all cash flow metrics lower.
Monitor the trend in operating cash flow relative to revenue, as the gap widened this quarter.