Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin improved year over year but weakened sequentially.
- Operating cash flow was slightly lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased over both periods, resulting in free cash flow that was lower sequentially but higher year over year, with the free cash flow margin narrowing from the prior quarter but expanding from the year-ago quarter.
- Compared to the prior quarter, free cash flow and margin decreased, while revenue increased. Compared to the same quarter last year, all metrics improved except capital expenditure, which was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$647.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$772.0M
Cash generated by operations before capital spending.
CapEx
$125.0M
Capital spending and related asset purchases.
FCF margin
10.0%
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 | $5.9B | $881.0M | $124.0M | $757.0M | 12.8% |
| 2023-12-31 | $6.1B | $751.0M | $134.0M | $617.0M | 10.1% |
| 2024-03-31 | $6.0B | $779.0M | $109.0M | $670.0M | 11.2% |
| 2024-06-30 | $6.4B | $772.0M | $125.0M | $647.0M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | $293.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue was higher than the prior quarter and the year-ago quarter, supporting the year-over-year improvement in free cash flow.
The higher revenue contributed to a year-over-year increase in free cash flow despite higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was slightly lower than the prior quarter but higher than the year-ago quarter. Capital expenditure increased over both periods, resulting in free cash flow that was lower sequentially but higher year over year, with the free cash flow margin narrowing from the prior quarter but expanding from the year-ago quarter.
Compared to the prior quarter, free cash flow and margin decreased, while revenue increased. Compared to the same quarter last year, all metrics improved except capital expenditure, which was higher.
Monitor the level of capital expenditure, which increased in both comparisons and reduced free cash flow sequentially.