Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but declined compared to the same quarter last year. The margin strengthened from the prior quarter yet remained below the year-ago level.
- Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow increased sequentially, while capital expenditure decreased both quarter over quarter and year over year, resulting in free cash flow that improved from the prior period but weakened from the prior year.
- Compared to the immediately preceding quarter, free cash flow and its margin were higher. Compared to the same quarter one year earlier, both free cash flow and its margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$284.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$308.0M
Cash generated by operations before capital spending.
CapEx
$24.0M
Capital spending and related asset purchases.
FCF margin
7.9%
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 | $3.5B | $306.0M | $34.0M | $272.0M | 7.7% |
| 2023-12-31 | $3.6B | $597.0M | $42.0M | $555.0M | 15.3% |
| 2024-03-31 | $3.4B | $171.0M | $31.0M | $140.0M | 4.1% |
| 2024-06-30 | $3.6B | $308.0M | $24.0M | $284.0M | 7.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Free Cash Flow Decline
Free cash flow was lower than the same quarter last year, despite a sequential improvement. The decline was accompanied by a lower operating cash flow compared to the prior year.
Sustained weakness in free cash flow relative to the prior year may constrain financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow increased sequentially, while capital expenditure decreased both quarter over quarter and year over year, resulting in free cash flow that improved from the prior period but weakened from the prior year.
Compared to the immediately preceding quarter, free cash flow and its margin were higher. Compared to the same quarter one year earlier, both free cash flow and its margin were lower.
Monitor the trajectory of operating cash flow, as it remains below the level of the same quarter last year.