Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive, driving free cash flow from negative to positive and well above revenue. The free cash flow margin improved sharply versus both the prior quarter and the same quarter last year.
- Revenue was slightly higher than the prior quarter, while operating cash flow shifted from a large outflow to a substantial inflow. Capital expenditure increased modestly, but the swing in operating cash flow converted revenue into free cash flow at a margin well above one hundred percent.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved from negative to positive. Compared to the same quarter one year earlier, the same metrics also moved from negative to positive, while revenue was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.0B
Cash generated by operations before capital spending.
CapEx
$20.8M
Capital spending and related asset purchases.
FCF margin
254.7%
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 | $1.1B | $86.7M | $21.1M | $65.6M | 5.9% |
| 2023-12-31 | $1.1B | $2.8B | $63.8M | $2.7B | 251.3% |
| 2024-03-31 | $1.1B | -$1.5B | $14.3M | -$1.5B | -128.3% |
| 2024-06-30 | $1.2B | $3.0B | $20.8M | $3.0B | 254.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 331.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 swing
Operating cash flow moved from a negative figure in both the prior quarter and the year-ago quarter to a large positive figure in the current quarter. This was the strongest observable driver of the improvement in free cash flow and margin.
Free cash flow turned from negative to positive and exceeded revenue, resulting in a free cash flow margin above one hundred percent.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, while operating cash flow shifted from a large outflow to a substantial inflow. Capital expenditure increased modestly, but the swing in operating cash flow converted revenue into free cash flow at a margin well above one hundred percent.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved from negative to positive. Compared to the same quarter one year earlier, the same metrics also moved from negative to positive, while revenue was slightly higher.
Monitor whether operating cash flow remains at a level that significantly exceeds revenue, as this relationship is unusual in the current quarter.