Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved substantially year-over-year and slightly sequentially, driven by higher operating cash flow. Revenue growth continued with a modest increase in capital expenditure.
- Revenue increased, and operating cash flow grew faster, leading to a higher free cash flow margin. Capital expenditure remained low relative to operating cash flow, supporting strong cash conversion.
- Compared to the prior quarter, free cash flow and margin were slightly higher. Versus the same quarter last year, both metrics were substantially higher, reflecting a significant improvement in cash generation.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$542.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$481.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$519.4M
Cash generated by operations before capital spending.
CapEx
$38.4M
Capital spending and related asset purchases.
FCF margin
7.8%
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 | $5.6B | $491.2M | $37.7M | $453.5M | 8.1% |
| 2023-12-31 | $5.8B | -$797.9M | $51.7M | -$849.6M | -14.7% |
| 2024-03-31 | $6.0B | $489.4M | $32.0M | $457.4M | 7.7% |
| 2024-06-30 | $6.2B | $519.4M | $38.4M | $481.0M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 244.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.7B | 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 Growth
Operating cash flow rose sequentially and significantly year-over-year, outpacing revenue growth. This was the primary factor behind the higher free cash flow and margin.
The improvement in operating cash flow provided a stronger foundation for free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow grew faster, leading to a higher free cash flow margin. Capital expenditure remained low relative to operating cash flow, supporting strong cash conversion.
Compared to the prior quarter, free cash flow and margin were slightly higher. Versus the same quarter last year, both metrics were substantially higher, reflecting a significant improvement in cash generation.
Monitor the sustainability of operating cash flow growth relative to revenue expansion.