Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow improved significantly year over year but was lower than the preceding quarter.
- Operating cash flow was lower than the prior quarter but higher than a year ago, while capital expenditure was slightly higher than both comparison periods. The resulting free cash flow margin weakened sequentially but improved compared to the same quarter last year.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$189.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$235.0M
Cash generated by operations before capital spending.
CapEx
$46.0M
Capital spending and related asset purchases.
FCF margin
7.1%
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 | $2.5B | $425.0M | $39.0M | $386.0M | 15.1% |
| 2023-12-31 | $2.5B | $686.0M | $77.0M | $609.0M | 24.1% |
| 2024-03-31 | $2.5B | $334.0M | $31.0M | $303.0M | 12.1% |
| 2024-06-30 | $2.6B | $235.0M | $46.0M | $189.0M | 7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 66.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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.
Year-over-year free cash flow improvement
Free cash flow was higher than the same quarter last year, driven by a higher operating cash flow that more than offset a slightly higher capital expenditure. The free cash flow margin also improved year over year.
The year-over-year increase in free cash flow strengthened the company's cash generation compared to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than a year ago, while capital expenditure was slightly higher than both comparison periods. The resulting free cash flow margin weakened sequentially but improved compared to the same quarter last year.
Compared to the prior quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the relationship between revenue and operating cash flow, as the current quarter's cash conversion was lower than the prior quarter despite higher revenue.