Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Free cash flow improved versus both periods, supported by higher operating cash flow and a lower capital expenditure relative to the prior quarter.
- Operating cash flow as a share of revenue was higher than both the preceding quarter and the year-ago quarter, driving an improved free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the same quarter last year.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, with operating cash flow higher and capital expenditure lower. Versus the same quarter one year earlier, free cash flow and margin were also higher, driven by a larger increase in operating cash flow relative to the rise in capital expenditure.
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
$376.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$436.3M
Cash generated by operations before capital spending.
CapEx
$59.8M
Capital spending and related asset purchases.
FCF margin
19.8%
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 | $1.9B | $520.3M | $27.8M | $492.5M | 26.5% |
| 2023-12-31 | $1.7B | $434.3M | $111.2M | $323.1M | 18.7% |
| 2024-03-31 | $1.9B | $412.1M | $66.0M | $346.1M | 18.2% |
| 2024-06-30 | $1.9B | $436.3M | $59.8M | $376.5M | 19.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $816.0M | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing the primary support for the improvement in free cash flow. This occurred even as revenue remained flat across all periods.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than both the preceding quarter and the year-ago quarter, driving an improved free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the same quarter last year.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, with operating cash flow higher and capital expenditure lower. Versus the same quarter one year earlier, free cash flow and margin were also higher, driven by a larger increase in operating cash flow relative to the rise in capital expenditure.
Monitor the trend in capital expenditure, which was lower sequentially but higher year-over-year, as its trajectory may affect future free cash flow conversion.