Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from the prior quarter, driving a significant improvement in free cash flow. However, free cash flow margin remained below the level of the same quarter last year.
- Revenue was stable compared to the prior year, but operating cash flow declined, resulting in lower free cash flow and margin. Capital expenditure was reduced, partially offsetting the cash flow decline.
- Compared to the prior quarter, operating cash flow improved from negative to positive, leading to a positive free cash flow. Versus the same quarter last year, both operating cash flow and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$303.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$346.0M
Cash generated by operations before capital spending.
CapEx
$43.0M
Capital spending and related asset purchases.
FCF margin
14.5%
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 | $2.0B | $480.0M | $48.0M | $432.0M | 21.8% |
| 2023-12-31 | $1.9B | $485.0M | $62.0M | $423.0M | 22.5% |
| 2024-03-31 | $1.9B | -$94.0M | $31.0M | -$125.0M | -6.5% |
| 2024-06-30 | $2.1B | $346.0M | $43.0M | $303.0M | 14.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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
The change from negative to positive operating cash flow was the strongest observable driver this quarter. This shift directly enabled the positive free cash flow, despite lower operating cash flow compared to the prior year.
The improvement in operating cash flow was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior year, but operating cash flow declined, resulting in lower free cash flow and margin. Capital expenditure was reduced, partially offsetting the cash flow decline.
Compared to the prior quarter, operating cash flow improved from negative to positive, leading to a positive free cash flow. Versus the same quarter last year, both operating cash flow and free cash flow were lower, and the margin weakened.
Monitor the increase in receivables from the prior year-end, as it may affect future cash conversion.