Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was unchanged year over year, while free cash flow margin weakened due to higher capital expenditure. Sequentially, revenue declined and free cash flow margin improved despite a drop in operating cash flow.
- Operating cash flow of one billion dollars exceeded capital expenditure of nearly seven hundred million, yielding free cash flow of over three hundred million dollars and a free cash flow margin of approximately nineteen percent.
- Compared to the preceding quarter, revenue was lower and operating cash flow was higher, but capital expenditure increased substantially, leading to lower free cash flow yet an improved free cash flow margin. Versus the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow was lower, resulting in a weakened free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$343.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$693.9M
Capital spending and related asset purchases.
FCF margin
19.4%
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 | $2.0B | $784.1M | $655.8M | $128.3M | 6.6% |
| 2023-12-31 | $2.2B | $480.0M | n/a | n/a | n/a |
| 2024-03-31 | $2.7B | $863.6M | $444.5M | $419.1M | 15.6% |
| 2024-06-30 | $1.8B | $1.0B | $693.9M | $343.5M | 19.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 163.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 39.2% | 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.
Capital expenditure growth
Capital expenditure rose sharply from both the prior quarter and the year-ago period, absorbing a larger portion of operating cash flow and compressing free cash flow despite higher operating cash generation.
Free cash flow margin declined year over year as the increase in capital expenditure outpaced the growth in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of one billion dollars exceeded capital expenditure of nearly seven hundred million, yielding free cash flow of over three hundred million dollars and a free cash flow margin of approximately nineteen percent.
Compared to the preceding quarter, revenue was lower and operating cash flow was higher, but capital expenditure increased substantially, leading to lower free cash flow yet an improved free cash flow margin. Versus the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow was lower, resulting in a weakened free cash flow margin.
Capital expenditure was materially higher than both the prior quarter and the year-ago quarter, a trend that directly reduced free cash flow.