Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sharply from the prior quarter and was lower than the same quarter last year. Operating cash flow declined significantly, while capital expenditure increased slightly, resulting in a much lower free cash flow.
- Revenue was nearly stable compared to the prior quarter and slightly lower than a year ago. Operating cash flow as a proportion of revenue decreased markedly, and with capital expenditure rising, free cash flow margin contracted.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially lower, and free cash flow margin declined sharply. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$493.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$23.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$51.1M
Cash generated by operations before capital spending.
CapEx
$27.2M
Capital spending and related asset purchases.
FCF margin
2.7%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $912.5M | $161.1M | $17.7M | $143.4M | 15.7% |
| 2023-09-30 | $917.9M | $151.0M | $20.7M | $130.3M | 14.2% |
| 2023-12-31 | $897.4M | $219.5M | $23.5M | $196.0M | 21.8% |
| 2024-03-31 | $893.9M | $51.1M | $27.2M | $23.9M | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 19.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | 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 fell sharply from both the prior quarter and the year-ago quarter, while revenue remained relatively stable. This was the strongest observable driver of the lower free cash flow.
The reduction in operating cash flow directly caused free cash flow to be lower, despite only a modest increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was nearly stable compared to the prior quarter and slightly lower than a year ago. Operating cash flow as a proportion of revenue decreased markedly, and with capital expenditure rising, free cash flow margin contracted.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially lower, and free cash flow margin declined sharply. Versus the same quarter one year earlier, operating cash flow and free cash flow were also lower, and margin weakened.
Monitor the trajectory of operating cash flow, as it was the primary driver of the decline in free cash flow.