Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased from the prior quarter, leading to a higher free cash flow margin. Compared to the same quarter last year, revenue was higher but free cash flow margin was lower despite similar operating cash flow, as capital expenditure differed.
- Revenue was higher than the prior quarter, and operating cash flow increased by a greater proportion, resulting in an improved free cash flow margin. Capital expenditure also rose, but free cash flow grew more than proportionally.
- Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, capital expenditure, and free cash flow were higher, and free cash flow margin strengthened. Versus the same quarter a year ago, revenue was higher and capital expenditure was lower, but free cash flow was slightly lower and free cash flow margin weakened, as operating cash flow was similar.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$874.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$188.4M
Capital spending and related asset purchases.
FCF margin
60.0%
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 | $1.4B | $935.9M | $227.7M | $708.2M | 50.2% |
| 2023-12-31 | $1.5B | $1.0B | $178.3M | $858.5M | 56.2% |
| 2024-03-31 | $1.4B | $773.1M | $163.0M | $610.1M | 42.3% |
| 2024-06-30 | $1.5B | $1.1B | $188.4M | $874.8M | 60.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.1B | 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 increase
Operating cash flow rose from the prior quarter, which was the main factor behind the higher free cash flow and improved margin. All other metrics moved in tandem.
The higher operating cash flow drove a stronger free cash flow position this quarter compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, and operating cash flow increased by a greater proportion, resulting in an improved free cash flow margin. Capital expenditure also rose, but free cash flow grew more than proportionally.
Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, capital expenditure, and free cash flow were higher, and free cash flow margin strengthened. Versus the same quarter a year ago, revenue was higher and capital expenditure was lower, but free cash flow was slightly lower and free cash flow margin weakened, as operating cash flow was similar.
Distributions from unconsolidated entities, which were a material source of liquidity in the first half of the year, as noted in the filing.