Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened as operating cash flow grew faster than revenue.
- Revenue was stable, while operating cash flow increased, leading to a higher free cash flow after capital expenditure. The free cash flow margin rose as a result of improved cash conversion from operations.
- Compared to the prior quarter, free cash flow and free cash flow margin were higher, with operating cash flow increasing while revenue remained similar. Versus the same quarter one year earlier, all metrics improved: operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$704.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$468.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$568.0M
Capital spending and related asset purchases.
FCF margin
15.4%
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 | $3.0B | $660.0M | $543.0M | $117.0M | 3.9% |
| 2023-12-31 | $3.1B | $673.0M | $836.0M | -$163.0M | -5.3% |
| 2024-03-31 | $3.0B | $839.0M | $557.0M | $282.0M | 9.4% |
| 2024-06-30 | $3.0B | $1.0B | $568.0M | $468.0M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.7% | 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.
Operating Cash Flow Growth
Operating cash flow was higher than both the prior quarter and the same quarter last year, while revenue remained stable. This was the strongest observable driver of the improvement in free cash flow.
Higher operating cash flow directly lifted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, while operating cash flow increased, leading to a higher free cash flow after capital expenditure. The free cash flow margin rose as a result of improved cash conversion from operations.
Compared to the prior quarter, free cash flow and free cash flow margin were higher, with operating cash flow increasing while revenue remained similar. Versus the same quarter one year earlier, all metrics improved: operating cash flow, free cash flow, and free cash flow margin were higher, while capital expenditure was also higher.
Monitor capital expenditure trends, as the amount was higher than both the prior quarter and the year-ago quarter.