Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to the same quarter last year but weakened sequentially. Revenue was stable versus the prior quarter and higher than a year ago.
- Revenue remained stable from the prior quarter, but operating cash flow decreased, leading to a lower free cash flow margin. Compared to a year ago, both revenue and operating cash flow were higher, resulting in an improved free cash flow margin.
- Sequentially, free cash flow decreased from the prior quarter, while capital expenditure was slightly lower. Year over year, free cash flow increased, and capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$505.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$599.5M
Cash generated by operations before capital spending.
CapEx
$94.3M
Capital spending and related asset purchases.
FCF margin
15.5%
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 | $3.1B | $536.4M | $95.4M | $441.0M | 14.4% |
| 2023-09-30 | $3.2B | $618.1M | $74.7M | $543.4M | 17.0% |
| 2023-12-31 | $3.3B | $841.8M | $105.0M | $736.8M | 22.1% |
| 2024-03-31 | $3.3B | $599.5M | $94.3M | $505.2M | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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 Performance
Operating cash flow was lower than the prior quarter even though revenue was unchanged, indicating a shift in cash conversion efficiency.
Future free cash flow levels will be influenced by the ability to maintain or improve operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable from the prior quarter, but operating cash flow decreased, leading to a lower free cash flow margin. Compared to a year ago, both revenue and operating cash flow were higher, resulting in an improved free cash flow margin.
Sequentially, free cash flow decreased from the prior quarter, while capital expenditure was slightly lower. Year over year, free cash flow increased, and capital expenditure was slightly lower.
Monitor the trend in operating cash flow, as it declined sequentially despite stable revenue.