Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to both the prior quarter and the same quarter last year. The free cash flow margin turned positive from a negative position in the prior quarter and improved from the year-ago level.
- Operating cash flow rose sharply relative to revenue, while capital expenditure remained stable, resulting in a positive free cash flow and a higher free cash flow margin compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved from negative to positive. Versus the same quarter last year, revenue was higher, operating cash flow and free cash flow were higher, and the free cash flow margin was stronger.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$478.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$171.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$216.1M
Cash generated by operations before capital spending.
CapEx
$44.8M
Capital spending and related asset purchases.
FCF margin
23.5%
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 |
|---|---|---|---|---|---|
| 2023-10-01 | $703.7M | $174.3M | $34.6M | $139.7M | 19.9% |
| 2023-12-31 | $670.6M | $248.8M | $44.3M | $204.4M | 30.5% |
| 2024-03-31 | $599.8M | $7.3M | $44.0M | -$36.7M | -6.1% |
| 2024-06-30 | $729.9M | $216.1M | $44.8M | $171.2M | 23.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 91.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.1% | 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 Surge
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin. Capital expenditure remained relatively stable across periods.
The strong operating cash flow was the primary factor behind the positive free cash flow and the higher free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose sharply relative to revenue, while capital expenditure remained stable, resulting in a positive free cash flow and a higher free cash flow margin compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved from negative to positive. Versus the same quarter last year, revenue was higher, operating cash flow and free cash flow were higher, and the free cash flow margin was stronger.
The increase in accounts receivable, which the filing linked to higher sales, is a concrete item to monitor for its effect on future cash conversion.