Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Compared to the prior quarter, free cash flow declined as operating cash flow decreased despite a slight reduction in capital spending.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure decreased versus both periods. Free cash flow margin strengthened substantially year-over-year but weakened sequentially.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by a decline in operating cash flow. Versus the same quarter last year, free cash flow and free cash flow margin were significantly higher, supported by a large increase in operating cash flow and a reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$370.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$502.0M
Cash generated by operations before capital spending.
CapEx
$132.0M
Capital spending and related asset purchases.
FCF margin
15.7%
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 | $2.2B | $724.0M | $145.0M | $579.0M | 26.9% |
| 2023-12-31 | $2.2B | $897.0M | $198.0M | $699.0M | 31.6% |
| 2024-03-31 | $2.2B | $595.0M | $140.0M | $455.0M | 20.8% |
| 2024-06-30 | $2.4B | $502.0M | $132.0M | $370.0M | 15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | 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 Recovery
Operating cash flow was substantially higher than the same quarter last year, providing the primary lift to free cash flow. This improvement occurred alongside higher revenue and lower capital expenditure.
The year-over-year increase in operating cash flow was the strongest observable driver of free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than a year ago but lower than the prior quarter. Capital expenditure decreased versus both periods. Free cash flow margin strengthened substantially year-over-year but weakened sequentially.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by a decline in operating cash flow. Versus the same quarter last year, free cash flow and free cash flow margin were significantly higher, supported by a large increase in operating cash flow and a reduction in capital expenditure.
Monitor the trajectory of operating cash flow, which declined from the prior quarter despite higher revenue.