Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but weakened significantly compared to the same quarter last year. The cash conversion rate rose from the previous quarter, yet remained below the year-ago level.
- Revenue was stable versus the prior quarter and the year-ago quarter. Operating cash flow increased from the previous quarter but was lower than the same quarter last year, leading to a higher free cash flow margin than the prior quarter but a lower margin than a year ago.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin both improved, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter one year earlier, free cash flow and free cash flow margin weakened, as operating cash flow was lower and capital expenditure was slightly higher.
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
$350.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$440.0M
Cash generated by operations before capital spending.
CapEx
$90.0M
Capital spending and related asset purchases.
FCF margin
8.8%
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 |
|---|---|---|---|---|---|
| 2023-10-01 | $3.9B | $674.0M | $114.0M | $560.0M | 14.3% |
| 2023-12-31 | $3.7B | $950.0M | $223.0M | $727.0M | 19.8% |
| 2024-03-31 | $3.9B | $287.0M | $153.0M | $134.0M | 3.4% |
| 2024-06-30 | $4.0B | $440.0M | $90.0M | $350.0M | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 603.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 recovery
Operating cash flow increased from the prior quarter, contributing to the improvement in free cash flow. Capital expenditure also decreased sequentially, further supporting free cash flow.
The sequential improvement in operating cash flow was the strongest observable driver of the quarter's free cash flow increase.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and the year-ago quarter. Operating cash flow increased from the previous quarter but was lower than the same quarter last year, leading to a higher free cash flow margin than the prior quarter but a lower margin than a year ago.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin both improved, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter one year earlier, free cash flow and free cash flow margin weakened, as operating cash flow was lower and capital expenditure was slightly higher.
Monitor the trend in operating cash flow, which declined from the year-ago quarter despite stable revenue.