Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter but slightly improved from the same quarter last year. Revenue was stable compared to the prior quarter and lower than the year-ago period.
- Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure was slightly lower than both comparison periods. The resulting free cash flow margin weakened from the prior quarter but was stable relative to the year-ago quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was slightly higher. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$808.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$37.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$150.0M
Cash generated by operations before capital spending.
CapEx
$113.0M
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 | $3.7B | $932.0M | $144.0M | $788.0M | 21.5% |
| 2023-09-30 | $3.4B | -$135.0M | $124.0M | -$259.0M | -7.5% |
| 2023-12-31 | $3.3B | $363.0M | $121.0M | $242.0M | 7.4% |
| 2024-03-31 | $3.4B | $150.0M | $113.0M | $37.0M | 1.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 19.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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, which was the primary factor behind the weakened free cash flow compared to the prior quarter.
Lower operating cash flow reduced free cash flow despite stable revenue and slightly lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and the year-ago quarter, while capital expenditure was slightly lower than both comparison periods. The resulting free cash flow margin weakened from the prior quarter but was stable relative to the year-ago quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was slightly higher. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was lower, and free cash flow was slightly higher.
Monitor the relationship between operating cash flow and capital expenditure, as the gap narrowed this quarter compared to the prior quarter.