Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter a year ago. The free cash flow margin turned positive from a negative level in the prior quarter and increased from the year-ago level.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, resulting in a positive free cash flow margin after capital expenditure.
- Compared to the prior quarter, free cash flow shifted from negative to positive, driven by higher operating cash flow and slightly lower capital expenditure. Compared to the same quarter a year ago, all key metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$649.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$628.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$800.0M
Capital spending and related asset purchases.
FCF margin
14.3%
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 | $2.5B | $1.0B | $604.0M | $399.0M | 16.0% |
| 2023-12-31 | $4.0B | $616.0M | $920.0M | -$304.0M | -7.7% |
| 2024-03-31 | $4.0B | $776.0M | $850.0M | -$74.0M | -1.8% |
| 2024-06-30 | $4.4B | $1.4B | $800.0M | $628.0M | 14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 73.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.1B | 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 improvement
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, more than offsetting capital expenditure.
This improvement drove the shift to a positive free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, resulting in a positive free cash flow margin after capital expenditure.
Compared to the prior quarter, free cash flow shifted from negative to positive, driven by higher operating cash flow and slightly lower capital expenditure. Compared to the same quarter a year ago, all key metrics were higher.
The level of capital expenditure relative to operating cash flow, as it directly affects free cash flow generation.