Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. Operating cash flow was higher than a year ago but lower than the preceding quarter.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but significantly higher than the same quarter last year. After deducting capital expenditure, free cash flow margin improved year over year but weakened sequentially.
- Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue, 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
$6.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.4B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$157.0M
Capital spending and related asset purchases.
FCF margin
17.3%
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 | $7.4B | $1.3B | $158.0M | $1.1B | 14.8% |
| 2023-12-31 | $8.0B | $2.6B | $145.0M | $2.5B | 30.8% |
| 2024-03-31 | $7.7B | $1.9B | $154.0M | $1.8B | 22.9% |
| 2024-06-30 | $7.9B | $1.5B | $157.0M | $1.4B | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Year-over-year cash flow recovery
Operating cash flow turned from negative to positive compared to the same quarter last year, driving a substantial improvement in free cash flow and free cash flow margin.
This shift was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but significantly higher than the same quarter last year. After deducting capital expenditure, free cash flow margin improved year over year but weakened sequentially.
Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite higher revenue.