Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved year over year but weakened sequentially, reflecting higher revenue offset by a lower operating cash flow conversion rate. Capital expenditure remained modest, supporting overall cash generation.
- Revenue increased compared to both the prior quarter and the year-ago period, while operating cash flow rose year over year but fell from the prior quarter. The free cash flow margin widened versus last year but narrowed from the previous quarter, as capital expenditure was lower than a year ago but slightly higher sequentially.
- Compared to the prior quarter, free cash flow and its margin weakened despite higher revenue. Versus the same quarter last year, both free cash flow and margin improved, supported by stronger operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$13.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$3.3B
Cash generated by operations before capital spending.
CapEx
$68.0M
Capital spending and related asset purchases.
FCF margin
17.6%
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 | $15.6B | $3.4B | $36.3M | $3.4B | 21.7% |
| 2023-12-31 | $16.9B | $2.4B | $82.1M | $2.4B | 13.9% |
| 2024-03-31 | $17.2B | $4.2B | $50.0M | $4.2B | 24.3% |
| 2024-06-30 | $18.1B | $3.3B | $68.0M | $3.2B | 17.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 219.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Revenue growth
Revenue increased compared to both the prior quarter and the year-ago period, providing the primary observable support for free cash flow improvement year over year. Filing context notes that underwriting profitability contributed to cash flow generation during the period.
Sustained premium growth could continue to benefit cash flow, but the sequential drop in operating cash flow warrants attention to conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the year-ago period, while operating cash flow rose year over year but fell from the prior quarter. The free cash flow margin widened versus last year but narrowed from the previous quarter, as capital expenditure was lower than a year ago but slightly higher sequentially.
Compared to the prior quarter, free cash flow and its margin weakened despite higher revenue. Versus the same quarter last year, both free cash flow and margin improved, supported by stronger operating cash flow and lower capital expenditure.
Monitor the trend of operating cash flow relative to revenue, as the sequential decline in cash conversion may signal changing efficiency.