Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was unchanged from the prior quarter but increased compared to the same quarter last year. Operating cash flow and free cash flow were lower than the prior quarter, while free cash flow margin weakened relative to both the prior quarter and the year-ago quarter.
- With revenue stable sequentially, the lower operating cash flow reduced the conversion of revenue into cash. Capital expenditure rose versus both the prior quarter and the year-ago quarter, contributing to a lower free cash flow margin.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and free cash flow margin weakened from a higher level. Versus the same quarter last year, revenue and both cash flow measures were higher, but free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$593.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$686.0M
Cash generated by operations before capital spending.
CapEx
$93.0M
Capital spending and related asset purchases.
FCF margin
32.6%
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 | $1.5B | $462.0M | $71.0M | $391.0M | 26.6% |
| 2023-12-31 | $1.5B | $477.0M | $73.0M | $404.0M | 27.3% |
| 2024-03-31 | $1.8B | $775.0M | $78.0M | $697.0M | 39.0% |
| 2024-06-30 | $1.8B | $686.0M | $93.0M | $593.0M | 32.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.3B | 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 Relative to Revenue
Despite revenue being stable sequentially, operating cash flow declined, indicating a weaker cash conversion rate from revenue. This was the primary observable factor behind the lower free cash flow margin.
The lower cash conversion contributed to a decline in free cash flow margin compared to both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue stable sequentially, the lower operating cash flow reduced the conversion of revenue into cash. Capital expenditure rose versus both the prior quarter and the year-ago quarter, contributing to a lower free cash flow margin.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and free cash flow margin weakened from a higher level. Versus the same quarter last year, revenue and both cash flow measures were higher, but free cash flow margin was lower.
Monitor capital expenditure because it increased compared to both the prior quarter and the same quarter last year.