Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a significant improvement in operating cash flow. Revenue was slightly lower than both the prior quarter and the same quarter last year.
- Operating cash flow was substantially higher than capital expenditure, resulting in a positive free cash flow and a healthy free cash flow margin. The conversion from revenue to free cash flow strengthened compared to the prior quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow improved markedly, while revenue was slightly lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, though revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$507.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$553.2M
Cash generated by operations before capital spending.
CapEx
$45.9M
Capital spending and related asset purchases.
FCF margin
22.1%
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 | $2.5B | $487.0M | $71.0M | $416.0M | 16.9% |
| 2023-09-30 | $2.5B | $592.4M | $74.2M | $518.2M | 20.5% |
| 2023-12-31 | $2.4B | $12.5M | $65.2M | -$52.7M | -2.2% |
| 2024-03-31 | $2.3B | $553.2M | $45.9M | $507.3M | 22.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Recovery
Operating cash flow rose sharply from the prior quarter, which was the primary factor behind the swing to positive free cash flow. This improvement occurred even as revenue declined slightly.
The stronger operating cash flow directly lifted 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.
Operating cash flow was substantially higher than capital expenditure, resulting in a positive free cash flow and a healthy free cash flow margin. The conversion from revenue to free cash flow strengthened compared to the prior quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow improved markedly, while revenue was slightly lower. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, though revenue was lower.
Monitor whether operating cash flow can sustain its current level in future quarters.