Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow held stable compared to the prior quarter despite lower revenue, supported by a higher cash conversion rate. Versus the same quarter last year, free cash flow and margin weakened as operating cash flow declined and capital spending remained elevated.
- Operating cash flow represented nearly half of revenue, resulting in a free cash flow margin above the prior quarter. Capital expenditure consumed a material portion of operating cash flow, leaving free cash flow lower than operating cash flow by a substantial margin.
- Revenue decreased relative to the prior quarter, while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Compared to the same quarter last year, revenue was stable, but operating cash flow and free cash flow were lower, resulting in a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$700.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$579.0M
Capital spending and related asset purchases.
FCF margin
24.6%
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 | $3.1B | $1.2B | $690.0M | $544.0M | 17.8% |
| 2023-12-31 | $3.0B | $1.8B | $2.5B | -$655.0M | -21.7% |
| 2024-03-31 | $3.3B | $1.2B | $544.0M | $690.0M | 20.7% |
| 2024-06-30 | $2.8B | $1.3B | $579.0M | $700.0M | 24.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 174.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.3% | 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 Efficiency
Operating cash flow improved from the prior quarter even as revenue declined, indicating a stronger cash conversion from revenue. This was the strongest observable driver supporting free cash flow in the current quarter.
Higher operating cash flow offset lower revenue and sustained capital expenditure, keeping free cash flow stable quarter over quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow represented nearly half of revenue, resulting in a free cash flow margin above the prior quarter. Capital expenditure consumed a material portion of operating cash flow, leaving free cash flow lower than operating cash flow by a substantial margin.
Revenue decreased relative to the prior quarter, while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Compared to the same quarter last year, revenue was stable, but operating cash flow and free cash flow were lower, resulting in a weakened margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly influences the level of free cash flow and margin.