Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved as operating cash flow outpaced revenue growth, while capital expenditure remained modest. Compared with the prior quarter and the same quarter last year, both revenue and free cash flow were higher, and the margin strengthened.
- Revenue increased, operating cash flow grew at a faster pace, and capital expenditure was relatively low, resulting in higher free cash flow and an improved free cash flow margin.
- Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, the same metrics were also higher, with the margin improving from a year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$340.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$349.2M
Cash generated by operations before capital spending.
CapEx
$8.6M
Capital spending and related asset purchases.
FCF margin
48.1%
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 | $625.4M | $291.1M | $3.6M | $287.6M | 46.0% |
| 2023-12-31 | $690.1M | $389.0M | $3.8M | $385.1M | 55.8% |
| 2024-03-31 | $680.0M | $300.1M | $4.3M | $295.9M | 43.5% |
| 2024-06-30 | $707.9M | $349.2M | $8.6M | $340.6M | 48.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth and Operating Cash Flow Strength
Revenue increased compared to the prior quarter and the year-ago period, while operating cash flow grew at a faster rate, leading to a higher free cash flow margin.
This stronger cash conversion improved the free cash flow margin and provided additional liquidity for the company's capital needs.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, operating cash flow grew at a faster pace, and capital expenditure was relatively low, resulting in higher free cash flow and an improved free cash flow margin.
Compared with the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, the same metrics were also higher, with the margin improving from a year earlier.
Monitor the company's use of liquidity for debt service, capital expenditures, dividends, and share repurchases as described in the filing.