Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter’s free cash flow margin weakened compared to both the prior quarter and the same quarter a year earlier, despite revenue growth. Operating cash flow declined from the prior quarter while capital expenditure increased, resulting in lower free cash flow.
- Revenue increased, but operating cash flow was lower than the prior quarter. Capital expenditure rose, and free cash flow and the corresponding margin decreased relative to the prior quarter.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, while revenue was higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure rose and the free cash flow margin weakened.
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
$408.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$460.0M
Cash generated by operations before capital spending.
CapEx
$52.0M
Capital spending and related asset purchases.
FCF margin
22.8%
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 | $1.5B | $300.0M | $37.0M | $263.0M | 18.1% |
| 2023-12-31 | $1.6B | $417.0M | $42.0M | $375.0M | 22.8% |
| 2024-03-31 | $1.7B | $530.0M | $39.0M | $491.0M | 29.3% |
| 2024-06-30 | $1.8B | $460.0M | $52.0M | $408.0M | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 183.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the same quarter a year earlier, outpacing the growth in operating cash flow.
This increase weighed on free cash flow and the margin, despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, but operating cash flow was lower than the prior quarter. Capital expenditure rose, and free cash flow and the corresponding margin decreased relative to the prior quarter.
Compared to the immediately preceding quarter, free cash flow and margin were lower, while revenue was higher. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure rose and the free cash flow margin weakened.
Monitor capital expenditure, as the filing discusses the company's balancing of internal investments and other capital deployment activities.