Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from the prior quarter, driven by a substantial increase in operating cash flow. Compared to the same quarter last year, free cash flow was slightly lower despite similar revenue levels.
- Revenue was stable relative to both the prior quarter and the year-ago quarter. Operating cash flow rose sharply from the prior quarter, leading to a higher free cash flow and an improved free cash flow margin, while capital expenditure was slightly lower.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were slightly lower, with operating cash flow and revenue both marginally weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$238.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$279.0M
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
11.6%
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 | $2.6B | $838.9M | $63.7M | $775.2M | 30.2% |
| 2023-12-31 | $2.1B | $33.0M | $68.0M | -$35.0M | -1.7% |
| 2024-03-31 | $2.1B | $120.0M | $51.0M | $69.0M | 3.2% |
| 2024-06-30 | $2.1B | $279.0M | $41.0M | $238.0M | 11.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.5B | 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 Recovery
Operating cash flow increased substantially from the prior quarter, while capital expenditure remained relatively stable. This drove a notable improvement in free cash flow and free cash flow margin.
The quarter's free cash flow was higher than the prior quarter, reflecting a stronger cash conversion from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to both the prior quarter and the year-ago quarter. Operating cash flow rose sharply from the prior quarter, leading to a higher free cash flow and an improved free cash flow margin, while capital expenditure was slightly lower.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were slightly lower, with operating cash flow and revenue both marginally weaker.
Monitor whether operating cash flow can sustain its recent improvement, as it was the primary driver of the quarter's free cash flow increase.