Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was stable versus the prior quarter and higher than a year ago. Operating cash flow increased relative to both periods, while capital expenditure was lower year-over-year, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, with operating cash flow higher and capital expenditure slightly higher. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were significantly higher, driven by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$415.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$440.1M
Cash generated by operations before capital spending.
CapEx
$24.9M
Capital spending and related asset purchases.
FCF margin
33.9%
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 | $1.1B | $286.3M | $30.0M | $256.2M | 23.2% |
| 2023-12-31 | $1.2B | $272.8M | $23.4M | $249.5M | 21.5% |
| 2024-03-31 | $1.2B | $402.0M | $21.2M | $380.8M | 31.8% |
| 2024-06-30 | $1.2B | $440.1M | $24.9M | $415.2M | 33.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 142.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$459.0M | 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 was higher than both the prior quarter and the same quarter last year, providing the primary support for the improvement in free cash flow and free cash flow margin.
Higher operating cash flow directly drove the increase in free cash flow and the expansion of free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and higher than a year ago. Operating cash flow increased relative to both periods, while capital expenditure was lower year-over-year, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, with operating cash flow higher and capital expenditure slightly higher. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were significantly higher, driven by higher operating cash flow and lower capital expenditure.
Monitor operating cash flow trends, as the filing notes that cash provided by operating activities may fluctuate due to factors including working capital requirements and supply chain disruptions.