Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive from the prior quarter, driving a substantial free cash flow and a positive margin. Compared to the same quarter last year, both operating cash flow and free cash flow were lower, and the margin weakened.
- Revenue was slightly higher than the prior quarter, but operating cash flow improved markedly from negative to positive, resulting in a free cash flow margin that turned positive. Capital expenditure was lower than both the prior quarter and the year-ago quarter, supporting the cash conversion.
- Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow and free cash flow improved from negative to positive, and the margin turned positive. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$465.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$513.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$847.0M
Cash generated by operations before capital spending.
CapEx
$333.9M
Capital spending and related asset purchases.
FCF margin
18.2%
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 | $3.5B | $647.4M | $411.7M | $235.7M | 6.6% |
| 2023-12-31 | $3.1B | $538.1M | $358.9M | $179.2M | 5.7% |
| 2024-03-31 | $2.7B | -$80.0M | $383.0M | -$463.0M | -17.3% |
| 2024-06-30 | $2.8B | $847.0M | $333.9M | $513.1M | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -317.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.9% | 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
Operating cash flow shifted from negative in the prior quarter to positive in the current quarter, which was the primary factor behind the improvement in free cash flow and margin.
This recovery enabled the company to generate positive free cash flow and a positive margin after a negative prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, but operating cash flow improved markedly from negative to positive, resulting in a free cash flow margin that turned positive. Capital expenditure was lower than both the prior quarter and the year-ago quarter, supporting the cash conversion.
Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow and free cash flow improved from negative to positive, and the margin turned positive. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor whether operating cash flow can sustain its positive level in the coming quarter, given the prior quarter's negative figure.