Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin was significantly higher than the prior quarter and the year-ago quarter, driven by a large increase in operating cash flow relative to revenue. Capital expenditure declined compared to both periods, further supporting free cash flow expansion.
- Revenue was lower sequentially but operating cash flow improved, resulting in a much higher free cash flow margin. The margin far exceeded the prior quarter and the year-ago quarter, indicating stronger cash conversion relative to revenue despite the revenue decline.
- Compared to the immediately preceding quarter, revenue decreased while operating cash flow increased and capital expenditure decreased, leading to higher free cash flow. Versus the same quarter one year earlier, revenue was lower, but operating cash flow improved and capital expenditure was reduced, also resulting in higher free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$886.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$396.7M
Capital spending and related asset purchases.
FCF margin
512.7%
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 | -$2.1B | $1.2B | $420.9M | $788.5M | -37.2% |
| 2023-09-30 | $181.0M | $1.3B | $390.7M | $909.9M | 502.7% |
| 2023-12-31 | $2.5B | $1.1B | $524.6M | $617.3M | 25.1% |
| 2024-03-31 | $173.0M | $1.3B | $396.7M | $886.9M | 512.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 229.3% | 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.
Strong Operating Cash Flow Improvement
Operating cash flow increased from both the prior quarter and the year-ago quarter, even as revenue declined. This was the strongest observable driver of the higher free cash flow.
The improvement in operating cash flow directly boosted free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower sequentially but operating cash flow improved, resulting in a much higher free cash flow margin. The margin far exceeded the prior quarter and the year-ago quarter, indicating stronger cash conversion relative to revenue despite the revenue decline.
Compared to the immediately preceding quarter, revenue decreased while operating cash flow increased and capital expenditure decreased, leading to higher free cash flow. Versus the same quarter one year earlier, revenue was lower, but operating cash flow improved and capital expenditure was reduced, also resulting in higher free cash flow.
Monitor the sustainability of the low capital expenditure level relative to historical periods, as it may normalize and affect free cash flow.