Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year. Free cash flow margin improved significantly, reflecting stronger cash conversion.
- Operating cash flow grew at a faster pace than capital expenditure, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher. Year-over-year, the same metrics showed substantial improvement, with free cash flow margin rising from a lower level.
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
$229.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$391.3M
Cash generated by operations before capital spending.
CapEx
$161.5M
Capital spending and related asset purchases.
FCF margin
4.1%
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 | $5.6B | $406.6M | $139.8M | $266.8M | 4.7% |
| 2023-12-31 | $5.8B | $1.0B | $109.4M | $894.1M | 15.5% |
| 2024-03-31 | $5.0B | $238.0M | $83.1M | $154.8M | 3.1% |
| 2024-06-30 | $5.6B | $391.3M | $161.5M | $229.9M | 4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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 increased relative to both the prior quarter and the year-ago quarter, driving the improvement in free cash flow.
Free cash flow margin improved as a result.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew at a faster pace than capital expenditure, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher. Year-over-year, the same metrics showed substantial improvement, with free cash flow margin rising from a lower level.
Monitor capital expenditure levels, as they increased notably and the filing indicates they are intended to support anticipated demand for services.