Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved year over year, while the free cash flow margin narrowed slightly. Quarter over quarter, operating cash flow and free cash flow declined, and the margin weakened.
- Revenue was stable sequentially and higher year over year. Operating cash flow as a share of revenue was lower than the prior quarter but higher than the year-ago period, resulting in a similar pattern for free cash flow margin.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were lower, and capital expenditure decreased. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$382.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$410.2M
Cash generated by operations before capital spending.
CapEx
$27.7M
Capital spending and related asset purchases.
FCF margin
22.0%
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 | $1.6B | $335.2M | $27.8M | $307.4M | 18.7% |
| 2023-09-30 | $1.6B | $472.9M | $28.7M | $444.2M | 27.4% |
| 2023-12-31 | $1.7B | $540.7M | $59.7M | $480.9M | 27.8% |
| 2024-03-31 | $1.7B | $410.2M | $27.7M | $382.6M | 22.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow growth
Operating cash flow increased year over year, supported by higher net income and noncash depreciation and amortization related to recent acquisitions, as described in the filing.
This drove free cash flow higher compared with the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year over year. Operating cash flow as a share of revenue was lower than the prior quarter but higher than the year-ago period, resulting in a similar pattern for free cash flow margin.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were lower, and capital expenditure decreased. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while capital expenditure increased.
The level of capital expenditure relative to operating cash flow should be monitored, as it shifted notably from the prior quarter.