Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved sequentially but weakened from the prior year, reflecting mixed performance.
- Operating cash flow increased from the prior quarter, while capital expenditure also rose, resulting in higher free cash flow and an improved margin. Compared to the prior year, operating cash flow was higher but capital expenditure increased more, leading to lower free cash flow and a weaker margin.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, with an improved margin. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure was significantly higher, resulting in lower free cash flow and a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$594.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$195.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$303.7M
Cash generated by operations before capital spending.
CapEx
$108.1M
Capital spending and related asset purchases.
FCF margin
15.3%
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 | $1.2B | $146.1M | $83.3M | $62.8M | 5.1% |
| 2023-12-31 | $1.3B | $291.2M | $118.9M | $172.3M | 13.3% |
| 2024-03-31 | $1.4B | $254.8M | $91.5M | $163.4M | 11.5% |
| 2024-06-30 | $1.3B | $303.7M | $108.1M | $195.6M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 Improvement
Operating cash flow rose from the prior quarter, supported by working capital improvements as noted in the filing, including higher collections and inventory management. This allowed free cash flow to increase despite higher capital expenditure.
The higher operating cash flow drove a stronger free cash flow margin sequentially, offsetting the impact of increased capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from the prior quarter, while capital expenditure also rose, resulting in higher free cash flow and an improved margin. Compared to the prior year, operating cash flow was higher but capital expenditure increased more, leading to lower free cash flow and a weaker margin.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, with an improved margin. Versus the same quarter one year earlier, revenue and operating cash flow were higher, but capital expenditure was significantly higher, resulting in lower free cash flow and a weakened margin.
Monitor the trajectory of capital expenditure, which increased both sequentially and year-over-year while revenue declined sequentially.