Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the prior quarter and turned positive from a negative year-ago level, driving free cash flow to a higher margin. Revenue also increased sequentially and year-over-year, supporting the cash generation.
- Revenue rose while operating cash flow expanded at a faster pace, resulting in a higher free cash flow margin. Capital expenditure remained stable relative to revenue, so the conversion improvement was driven by stronger operating cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow both increased, and the free cash flow margin improved. Versus the same quarter last year, operating cash flow turned from negative to positive, and free cash flow also reversed from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$655.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$711.0M
Cash generated by operations before capital spending.
CapEx
$56.0M
Capital spending and related asset purchases.
FCF margin
17.4%
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 | $434.0M | $51.0M | $383.0M | 10.9% |
| 2023-12-31 | $3.5B | $543.0M | $50.0M | $493.0M | 14.0% |
| 2024-03-31 | $3.6B | $391.0M | $49.0M | $342.0M | 9.4% |
| 2024-06-30 | $3.8B | $711.0M | $56.0M | $655.0M | 17.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 Strength
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter, with the year-ago figure being negative. This was the primary factor behind the higher free cash flow and margin.
The improvement in operating cash flow directly lifted free cash flow and margin without requiring a change in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow expanded at a faster pace, resulting in a higher free cash flow margin. Capital expenditure remained stable relative to revenue, so the conversion improvement was driven by stronger operating cash flow.
Compared to the prior quarter, operating cash flow and free cash flow both increased, and the free cash flow margin improved. Versus the same quarter last year, operating cash flow turned from negative to positive, and free cash flow also reversed from negative to positive.
Monitor whether operating cash flow can sustain its current level relative to revenue in subsequent quarters.