Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow improved sequentially but declined sharply compared to the year-ago period, as operating cash flow fell while capital expenditure was lower.
- Operating cash flow as a percentage of revenue weakened versus both the prior quarter and the year-ago quarter, resulting in a free cash flow margin that improved slightly from the prior quarter but remained far below the year-ago level.
- Compared to the prior quarter, revenue was higher and free cash flow improved, driven by a lower capital expenditure. Versus the same quarter last year, revenue was higher but free cash flow was significantly lower, as operating cash flow decreased substantially despite a reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$491.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$19.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$28.7M
Cash generated by operations before capital spending.
CapEx
$9.4M
Capital spending and related asset purchases.
FCF margin
1.9%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $1.0B | $251.8M | $58.5M | $193.2M | 19.3% |
| 2023-09-30 | $960.2M | $287.2M | $21.6M | $265.6M | 27.7% |
| 2023-12-31 | $956.7M | $46.9M | $33.4M | $13.5M | 1.4% |
| 2024-03-31 | $997.4M | $28.7M | $9.4M | $19.3M | 1.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 18.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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, even as revenue increased. This was the primary factor behind the year-over-year drop in free cash flow.
The weakened cash conversion from revenue constrained free cash flow generation relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue weakened versus both the prior quarter and the year-ago quarter, resulting in a free cash flow margin that improved slightly from the prior quarter but remained far below the year-ago level.
Compared to the prior quarter, revenue was higher and free cash flow improved, driven by a lower capital expenditure. Versus the same quarter last year, revenue was higher but free cash flow was significantly lower, as operating cash flow decreased substantially despite a reduction in capital expenditure.
Monitor the trajectory of operating cash flow, which declined sequentially and year-over-year despite higher revenue.