Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, the company generated positive free cash flow after two consecutive quarters of negative free cash flow. Revenue was higher than both the prior quarter and the same quarter last year, while operating cash flow turned positive.
- Revenue increased compared to both the prior quarter and the year-ago quarter. Operating cash flow shifted from negative to positive, and after capital expenditure, free cash flow was positive with a positive margin. This indicates an improvement in cash conversion.
- Compared to the immediately preceding quarter, free cash flow improved from negative to positive, as operating cash flow turned positive despite higher capital expenditure. Compared to the same quarter one year earlier, free cash flow also improved from negative to positive, with higher revenue and a significant swing in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$94.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$136.6M
Cash generated by operations before capital spending.
CapEx
$41.7M
Capital spending and related asset purchases.
FCF margin
4.4%
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 | $2.0B | $654.3M | $78.7M | $575.6M | 29.2% |
| 2023-09-30 | $2.0B | $764.5M | $27.3M | $737.2M | 37.1% |
| 2023-12-31 | $2.0B | -$251.9M | $19.5M | -$271.4M | -13.6% |
| 2024-03-31 | $2.2B | $136.6M | $41.7M | $94.9M | 4.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 Turnaround
Operating cash flow shifted from negative in both the prior quarter and the year-ago quarter to positive in the current period. The filing attributes this primarily to lower net purchases of investments by consolidated investment products and decreases in receivables.
This improvement was the primary factor turning free cash flow positive.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to both the prior quarter and the year-ago quarter. Operating cash flow shifted from negative to positive, and after capital expenditure, free cash flow was positive with a positive margin. This indicates an improvement in cash conversion.
Compared to the immediately preceding quarter, free cash flow improved from negative to positive, as operating cash flow turned positive despite higher capital expenditure. Compared to the same quarter one year earlier, free cash flow also improved from negative to positive, with higher revenue and a significant swing in operating cash flow.
Monitor the level of capital expenditure, which increased from both the prior quarter and the year-ago quarter.