Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved sharply from the preceding quarter, turning a deficit into a positive margin. Compared to the same quarter a year earlier, however, both cash flow measures and the free cash flow margin were slightly lower.
- Revenue rose while operating cash flow increased significantly, resulting in a free cash flow margin that moved from negative to positive. Capital expenditure was slightly lower than the prior quarter, supporting the conversion into positive free cash flow.
- Compared to the preceding quarter, revenue, operating cash flow, and free cash flow all improved substantially, with margin turning positive. Versus the same quarter one year earlier, revenue was slightly lower and both operating cash flow and free cash flow were moderately lower, resulting in a slightly weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$691.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$869.2M
Cash generated by operations before capital spending.
CapEx
$177.5M
Capital spending and related asset purchases.
FCF margin
18.0%
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 | $3.9B | $710.1M | $159.0M | $551.1M | 14.1% |
| 2023-12-31 | $3.3B | $474.5M | $177.4M | $297.1M | 8.9% |
| 2024-03-31 | $3.0B | $25.4M | $214.7M | -$189.3M | -6.2% |
| 2024-06-30 | $3.8B | $869.2M | $177.5M | $691.7M | 18.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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 previous quarter, driving free cash flow from a deficit to a positive figure. This was the strongest observable change among the supplied metrics.
The improvement in operating cash flow was the primary factor behind the quarter's positive free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased significantly, resulting in a free cash flow margin that moved from negative to positive. Capital expenditure was slightly lower than the prior quarter, supporting the conversion into positive free cash flow.
Compared to the preceding quarter, revenue, operating cash flow, and free cash flow all improved substantially, with margin turning positive. Versus the same quarter one year earlier, revenue was slightly lower and both operating cash flow and free cash flow were moderately lower, resulting in a slightly weakened margin.
Monitor whether operating cash flow can sustain the elevated level seen this quarter relative to the prior quarter's low point.