Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position a year ago, though it was lower than the prior quarter.
- Operating cash flow relative to revenue was lower than the prior quarter but higher than the year ago quarter. Capital expenditure was lower than both comparison periods, contributing to a positive free cash flow margin.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was higher. Compared to the same quarter one year earlier, all metrics improved, with free cash flow moving from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$694.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$71.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$119.8M
Cash generated by operations before capital spending.
CapEx
$48.8M
Capital spending and related asset purchases.
FCF margin
3.3%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $2.1B | $189.6M | $51.4M | $138.2M | 6.6% |
| 2023-09-30 | $2.1B | $322.6M | $57.1M | $265.5M | 12.7% |
| 2023-12-30 | $2.1B | $311.9M | $92.3M | $219.6M | 10.4% |
| 2024-03-30 | $2.2B | $119.8M | $48.8M | $71.0M | 3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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.
Cash flow improvement from prior year
Operating cash flow was markedly higher than the year ago quarter, lifting free cash flow into positive territory after a negative margin a year ago.
This recovery provides a stronger cash generation base compared to the same period last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow relative to revenue was lower than the prior quarter but higher than the year ago quarter. Capital expenditure was lower than both comparison periods, contributing to a positive free cash flow margin.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, while revenue was higher. Compared to the same quarter one year earlier, all metrics improved, with free cash flow moving from negative to positive.
The sequential decline in operating cash flow from the prior quarter is a trend to monitor.