Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially but higher year over year. Free cash flow margin weakened sharply from the prior quarter and was lower than the same quarter last year.
- Operating cash flow was lower than the prior quarter but slightly higher than a year ago. Capital expenditure increased both sequentially and year over year, resulting in free cash flow that was lower than both comparable periods.
- Compared to the prior quarter, operating cash flow decreased while capital expenditure increased, causing free cash flow and margin to decline. Versus the same quarter last year, revenue was higher but free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$358.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$620.0M
Cash generated by operations before capital spending.
CapEx
$262.0M
Capital spending and related asset purchases.
FCF margin
13.6%
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 | $2.3B | $311.0M | $136.0M | $175.0M | 7.6% |
| 2023-12-31 | $2.4B | $1.6B | $261.0M | $1.3B | 55.1% |
| 2024-03-31 | $2.6B | $1.3B | $135.0M | $1.2B | 46.3% |
| 2024-06-30 | $2.6B | $620.0M | $262.0M | $358.0M | 13.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.0% | 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.
Capital Expenditure Increase
Capital expenditure was higher than both the prior quarter and the same quarter last year, which was the strongest observable factor behind the decline in free cash flow.
Higher capital expenditure reduced free cash flow and margin despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but slightly higher than a year ago. Capital expenditure increased both sequentially and year over year, resulting in free cash flow that was lower than both comparable periods.
Compared to the prior quarter, operating cash flow decreased while capital expenditure increased, causing free cash flow and margin to decline. Versus the same quarter last year, revenue was higher but free cash flow and margin were lower.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending reduced free cash flow conversion this quarter.