Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to the previous quarter and the same quarter last year. The free cash flow margin turned positive and strengthened notably from both prior periods.
- Revenue rose while operating cash flow increased sharply, contributing to a free cash flow margin that moved from negative a year ago and very low last quarter to a higher level. Capital expenditure was stable compared to the prior quarter but higher than a year ago.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved substantially. Versus the same quarter one year ago, all four metrics improved, with free cash flow turning from negative to positive and the margin strengthening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$890.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$215.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$288.0M
Cash generated by operations before capital spending.
CapEx
$73.0M
Capital spending and related asset purchases.
FCF margin
9.9%
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 | $2.1B | $373.0M | $74.0M | $299.0M | 14.4% |
| 2023-12-31 | $2.1B | $455.0M | $94.0M | $361.0M | 17.0% |
| 2024-03-31 | $2.0B | $89.0M | $74.0M | $15.0M | 0.7% |
| 2024-06-30 | $2.2B | $288.0M | $73.0M | $215.0M | 9.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Operating Cash Flow
Operating cash flow increased sharply from both the prior quarter and the year-ago quarter, driving a significant improvement in free cash flow despite a modest rise in capital expenditure.
The improvement in operating cash flow was the primary factor behind the higher free cash flow and free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow increased sharply, contributing to a free cash flow margin that moved from negative a year ago and very low last quarter to a higher level. Capital expenditure was stable compared to the prior quarter but higher than a year ago.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved substantially. Versus the same quarter one year ago, all four metrics improved, with free cash flow turning from negative to positive and the margin strengthening.
Monitor the trend in capital expenditure relative to operating cash flow, as capital expenditure remained stable quarter over quarter while operating cash flow rose significantly.