Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Operating cash flow and free cash flow were lower than both comparable periods, resulting in a weakened free cash flow margin.
- Operating cash flow as a proportion of revenue was lower than the prior quarter and the year-ago quarter. After capital expenditure, free cash flow margin was also lower, indicating a weaker cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were substantially lower. Compared to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$756.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$31.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$82.5M
Cash generated by operations before capital spending.
CapEx
$50.8M
Capital spending and related asset purchases.
FCF margin
1.1%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $2.7B | $185.4M | $49.4M | $136.0M | 5.0% |
| 2023-09-30 | $2.8B | $330.5M | $50.4M | $280.1M | 10.1% |
| 2023-12-31 | $3.0B | $362.6M | $54.3M | $308.3M | 10.3% |
| 2024-03-31 | $2.9B | $82.5M | $50.8M | $31.7M | 1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 13.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, despite higher revenue compared to last year. This was the strongest observable driver of the weakened free cash flow.
The lower operating cash flow directly reduced free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter and the year-ago quarter. After capital expenditure, free cash flow margin was also lower, indicating a weaker cash conversion efficiency.
Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were substantially lower. Compared to the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower.
Monitor the relationship between revenue and operating cash flow, as revenue increased year-over-year but operating cash flow declined.