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. However, operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
- Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure was higher. This combination led to a lower free cash flow and a weakened free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Compared to the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$547.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$212.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$412.1M
Cash generated by operations before capital spending.
CapEx
$199.6M
Capital spending and related asset purchases.
FCF margin
3.5%
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 | $8.2B | -$892.2M | $102.4M | -$994.6M | -12.2% |
| 2023-12-31 | $5.8B | $608.4M | $133.7M | $474.6M | 8.2% |
| 2024-03-31 | $3.8B | $988.9M | $134.1M | $854.8M | 22.5% |
| 2024-06-30 | $6.0B | $412.1M | $199.6M | $212.4M | 3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 decline
Operating cash flow decreased compared to both the prior quarter and the year-ago quarter, despite higher revenue. This drove the lower free cash flow and margin.
The weakened cash conversion reduced free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure was higher. This combination led to a lower free cash flow and a weakened free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow, free cash flow, and margin were all lower. Compared to the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were lower.
Monitor the trend in capital expenditure, which was higher than both the prior quarter and the year-ago quarter.