Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than the prior quarter, while capital expenditure was lower, resulting in improved free cash flow and margin. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was stable, capital expenditure was higher, and free cash flow and margin were lower.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but stable versus the year-ago quarter. The combination of lower capital expenditure relative to the prior quarter and higher revenue supported a stronger free cash flow margin compared to the prior quarter.
- Compared to the immediately preceding quarter, free cash flow and margin improved, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin weakened, as capital expenditure increased while operating cash flow remained stable.
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
$696.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$403.4M
Capital spending and related asset purchases.
FCF margin
17.2%
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 | $3.8B | $953.1M | $369.0M | $584.1M | 15.3% |
| 2023-12-31 | $3.8B | $898.7M | $547.8M | $350.9M | 9.2% |
| 2024-03-31 | $3.9B | $811.0M | $515.0M | $296.0M | 7.7% |
| 2024-06-30 | $4.0B | $1.1B | $403.4M | $696.6M | 17.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.0% | 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.
Operating Cash Flow Strength
Operating cash flow was higher than the prior quarter and stable compared to the year-ago quarter, providing a solid base for free cash flow generation. This was the strongest observable driver of the quarter's cash conversion improvement relative to the prior period.
Higher operating cash flow relative to the prior quarter directly supported the increase in free cash flow and margin.
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 higher than the prior quarter but stable versus the year-ago quarter. The combination of lower capital expenditure relative to the prior quarter and higher revenue supported a stronger free cash flow margin compared to the prior quarter.
Compared to the immediately preceding quarter, free cash flow and margin improved, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin weakened, as capital expenditure increased while operating cash flow remained stable.
Monitor the trend in capital expenditure relative to operating cash flow, as a higher ratio compared to the year-ago quarter contributed to the decline in free cash flow margin.