Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the year-ago period, but operating cash flow declined sharply from the previous quarter, resulting in a lower free cash flow margin. Free cash flow improved relative to the same quarter last year, though it remained well below the prior quarter's level.
- Revenue was higher than the prior quarter, yet operating cash flow decreased, and capital expenditure rose, leading to a lower free cash flow and a narrower free cash flow margin. Compared to the same quarter a year earlier, revenue was higher, operating cash flow improved, capital expenditure increased, and free cash flow and its margin both strengthened.
- Sequentially, revenue rose but operating cash flow fell, capital expenditure increased, and free cash flow and its margin weakened. Year over year, revenue, operating cash flow, capital expenditure, free cash flow, and margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$112.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$180.0M
Cash generated by operations before capital spending.
CapEx
$68.0M
Capital spending and related asset purchases.
FCF margin
4.3%
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 | $2.6B | $714.0M | $65.0M | $649.0M | 25.4% |
| 2023-12-31 | $2.8B | $1.2B | $81.0M | $1.2B | 40.9% |
| 2024-03-30 | $2.4B | $382.0M | $46.0M | $336.0M | 14.1% |
| 2024-06-29 | $2.6B | $180.0M | $68.0M | $112.0M | 4.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 25.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential decline in operating cash flow
Operating cash flow decreased from the prior quarter despite higher revenue, while capital expenditure rose. The filing context for the six-month period notes that higher earnings and improved working capital contributed to operating cash flow, offset by higher incentive payments.
Free cash flow margin narrowed significantly from the prior quarter, reflecting weaker cash conversion relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, yet operating cash flow decreased, and capital expenditure rose, leading to a lower free cash flow and a narrower free cash flow margin. Compared to the same quarter a year earlier, revenue was higher, operating cash flow improved, capital expenditure increased, and free cash flow and its margin both strengthened.
Sequentially, revenue rose but operating cash flow fell, capital expenditure increased, and free cash flow and its margin weakened. Year over year, revenue, operating cash flow, capital expenditure, free cash flow, and margin all improved.
Monitor the relationship between revenue growth and operating cash flow, as the current quarter's revenue increase did not translate into a sequential improvement in cash generation.