Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sharply as operating cash flow rose while capital expenditure increased moderately, resulting in higher free cash flow and a stronger margin. The current quarter's free cash flow margin was higher than both the prior quarter and the same quarter last year.
- Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow grew substantially, and capital expenditure also rose, but free cash flow expanded at a faster pace, lifting the free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing notable strengthening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$833.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$437.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$679.3M
Cash generated by operations before capital spending.
CapEx
$241.4M
Capital spending and related asset purchases.
FCF margin
11.2%
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 | $3.6B | $161.7M | $200.0M | -$38.3M | -1.1% |
| 2023-12-31 | $3.7B | $452.4M | $206.4M | $246.0M | 6.6% |
| 2024-03-31 | $3.8B | $396.4M | $208.5M | $187.9M | 4.9% |
| 2024-06-30 | $3.9B | $679.3M | $241.4M | $437.9M | 11.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow expansion
Operating cash flow increased significantly from both the prior quarter and the same quarter last year, outpacing the rise in capital expenditure and driving free cash flow higher.
This was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow grew substantially, and capital expenditure also rose, but free cash flow expanded at a faster pace, lifting the free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, all metrics were higher, with operating cash flow and free cash flow showing notable strengthening.
Monitor whether the elevated capital expenditure level persists relative to the prior quarter and the year-ago quarter, as it could affect future free cash flow generation.