Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved significantly from both periods.
- Operating cash flow was substantially higher than capital expenditure, resulting in a strong free cash flow margin. The conversion of revenue into free cash flow improved markedly.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with a notable improvement in free cash flow margin.
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
$226.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$232.7M
Cash generated by operations before capital spending.
CapEx
$6.4M
Capital spending and related asset purchases.
FCF margin
8.7%
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 | $2.6B | $658.1M | $7.1M | $651.0M | 25.3% |
| 2023-12-31 | $2.4B | $495.7M | $6.3M | $489.4M | 20.1% |
| 2024-03-31 | $2.3B | $146.5M | $9.0M | $137.5M | 5.9% |
| 2024-06-30 | $2.6B | $232.7M | $6.4M | $226.3M | 8.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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, driving a substantial increase in free cash flow.
This improvement in cash generation supported a higher 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 was substantially higher than capital expenditure, resulting in a strong free cash flow margin. The conversion of revenue into free cash flow improved markedly.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with a notable improvement in free cash flow margin.
Monitor the company's cash and cash equivalents balance, which decreased from the prior year-end level as disclosed in the balance sheet.