Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter and higher than a year ago. Operating cash flow declined versus both periods, leading to a decrease in free cash flow and a lower free cash flow margin.
- Operating cash flow, after deducting capital expenditure, yielded free cash flow that was lower than revenue growth alone would suggest, resulting in a weakened margin.
- Compared to the immediate prior quarter, revenue was slightly lower and operating cash flow decreased, while capital expenditure increased, causing free cash flow to decline. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, with a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$236.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$474.2M
Cash generated by operations before capital spending.
CapEx
$238.2M
Capital spending and related asset purchases.
FCF margin
5.5%
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 | $4.0B | $694.1M | $209.8M | $484.3M | 12.2% |
| 2023-12-31 | $4.4B | $715.9M | $328.8M | $387.2M | 8.8% |
| 2024-03-31 | $4.4B | $549.3M | $172.1M | $377.2M | 8.6% |
| 2024-06-30 | $4.3B | $474.2M | $238.2M | $236.0M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower operating cash flow
Operating cash flow declined both sequentially and year-over-year, which was the primary observable factor behind the reduction in free cash flow despite higher revenue than a year ago.
Weaker cash generation from operations directly reduced free cash flow and compressed the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow, after deducting capital expenditure, yielded free cash flow that was lower than revenue growth alone would suggest, resulting in a weakened margin.
Compared to the immediate prior quarter, revenue was slightly lower and operating cash flow decreased, while capital expenditure increased, causing free cash flow to decline. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, with a weakened free cash flow margin.
Monitor capital expenditure trends given the sequential increase from the prior quarter.