Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but was lower than the same quarter last year. The free cash flow margin strengthened sequentially while weakening on an annual basis.
- Revenue was slightly higher than the prior quarter and lower than the year-ago quarter. Operating cash flow increased from the prior quarter but decreased from the year-ago quarter. Capital expenditure rose both sequentially and annually, resulting in free cash flow that improved from the prior quarter but declined from the year-ago quarter. The free cash flow margin followed a similar pattern.
- Compared to the immediately preceding quarter, free cash flow and its margin improved, driven by higher operating cash flow despite increased capital expenditure. Compared to the same quarter one year earlier, free cash flow and its margin weakened, as revenue was lower and operating cash flow declined while capital expenditure rose.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$357.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$64.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$165.0M
Cash generated by operations before capital spending.
CapEx
$100.2M
Capital spending and related asset purchases.
FCF margin
9.2%
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 | $747.4M | $230.1M | $95.8M | $134.3M | 18.0% |
| 2023-12-31 | $732.0M | $239.1M | $108.7M | $130.4M | 17.8% |
| 2024-03-31 | $695.4M | $118.2M | $90.6M | $27.6M | 4.0% |
| 2024-06-30 | $702.1M | $165.0M | $100.2M | $64.8M | 9.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | $240.4M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow in the current quarter was higher than the prior quarter, which was the strongest observable driver for the sequential improvement in free cash flow. The filing context notes that operating cash flow for the first half of the year decreased compared to the same period last year, primarily due to a decline in operating results offset by favorable working capital management.
The higher operating cash flow directly contributed to the sequential increase in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter and lower than the year-ago quarter. Operating cash flow increased from the prior quarter but decreased from the year-ago quarter. Capital expenditure rose both sequentially and annually, resulting in free cash flow that improved from the prior quarter but declined from the year-ago quarter. The free cash flow margin followed a similar pattern.
Compared to the immediately preceding quarter, free cash flow and its margin improved, driven by higher operating cash flow despite increased capital expenditure. Compared to the same quarter one year earlier, free cash flow and its margin weakened, as revenue was lower and operating cash flow declined while capital expenditure rose.
Monitor capital expenditure trend, as it increased both sequentially and annually and is the largest cash outflow component.