Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow turned sharply positive from the prior quarter's negative level, while free cash flow margin improved compared to the same quarter last year. Revenue remained stable relative to the year-ago quarter.
- Operating cash flow was substantially higher than capital expenditure, yielding a very high free cash flow margin. The conversion from revenue to free cash flow strengthened considerably as operating cash flow exceeded revenue despite stable revenue.
- Compared to the prior quarter, operating cash flow and free cash flow reversed from a deficit to a large surplus, while free cash flow margin swung from negative to positive. Versus the same quarter a year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$635.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$522.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$539.2M
Cash generated by operations before capital spending.
CapEx
$17.0M
Capital spending and related asset purchases.
FCF margin
47.5%
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 | $1.0B | $162.2M | $19.4M | $142.8M | 14.2% |
| 2023-12-31 | $984.6M | $118.5M | $21.2M | $97.3M | 9.9% |
| 2024-03-31 | $1.0B | -$107.6M | $19.3M | -$126.9M | -12.5% |
| 2024-06-30 | $1.1B | $539.2M | $17.0M | $522.2M | 47.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 280.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | 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 Surge
Operating cash flow in the current quarter was significantly higher than both the prior quarter and the year-ago quarter, driving a substantial increase in free cash flow despite a modest capital expenditure level.
The strong operating cash flow was the primary factor behind the quarter's favorable 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, yielding a very high free cash flow margin. The conversion from revenue to free cash flow strengthened considerably as operating cash flow exceeded revenue despite stable revenue.
Compared to the prior quarter, operating cash flow and free cash flow reversed from a deficit to a large surplus, while free cash flow margin swung from negative to positive. Versus the same quarter a year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor whether the seasonal cash flow reversal pattern repeats in the next quarter, as the filing context indicates second-quarter peak seasonality.