Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened year over year as revenue and free cash flow both increased, though the free cash flow margin narrowed slightly from the immediately preceding quarter. Revenue was higher than both the prior quarter and the same period last year.
- Revenue grew compared to both the prior quarter and the year-ago period. Operating cash flow improved year over year but was slightly lower than the previous quarter. Capital expenditure increased in both comparisons. Free cash flow and free cash flow margin were higher than a year ago but lower than the prior quarter.
- Compared with the immediately preceding quarter, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower. Relative to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$504.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$513.8M
Cash generated by operations before capital spending.
CapEx
$9.4M
Capital spending and related asset purchases.
FCF margin
32.1%
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 | $1.5B | $434.1M | $11.6M | $422.5M | 29.0% |
| 2023-09-30 | $1.5B | $699.0M | $11.2M | $687.8M | 45.6% |
| 2023-12-31 | $1.5B | $526.5M | $6.0M | $520.5M | 33.8% |
| 2024-03-31 | $1.6B | $513.8M | $9.4M | $504.4M | 32.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 79.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Year-over-year free cash flow expansion
Free cash flow and free cash flow margin improved compared to the same quarter last year, supported by higher revenue and operating cash flow.
This indicates stronger cash generation efficiency relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew compared to both the prior quarter and the year-ago period. Operating cash flow improved year over year but was slightly lower than the previous quarter. Capital expenditure increased in both comparisons. Free cash flow and free cash flow margin were higher than a year ago but lower than the prior quarter.
Compared with the immediately preceding quarter, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all lower. Relative to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
Monitor the trajectory of capital expenditure relative to revenue, as the company’s liquidity discussion indicates plans to invest for long-term growth.