Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin weakened from the prior quarter but improved from the year-ago quarter.
- Revenue was higher than both the preceding quarter and the year-ago quarter. Operating cash flow exceeded capital expenditure, resulting in positive free cash flow, though the free cash flow margin showed a mixed trend relative to the two comparison periods.
- Compared to the immediately preceding quarter, revenue and operating cash flow increased, capital expenditure rose, free cash flow improved, but the free cash flow margin declined. Compared to the same quarter one year earlier, all metrics improved, including a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$184.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$207.4M
Cash generated by operations before capital spending.
CapEx
$22.8M
Capital spending and related asset purchases.
FCF margin
10.7%
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 | $1.8B | $729.2M | $17.0M | $712.2M | 38.7% |
| 2023-09-30 | $1.4B | -$62.0M | $4.7M | -$66.7M | -4.7% |
| 2023-12-31 | $1.4B | $189.8M | $12.1M | $177.7M | 12.6% |
| 2024-03-31 | $1.7B | $207.4M | $22.8M | $184.6M | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | 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 Strength
Operating cash flow was the strongest observable driver, increasing relative to both the prior quarter and the year-ago quarter, and supporting higher free cash flow.
The increase in operating cash flow directly contributed to the improvement in free cash flow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the preceding quarter and the year-ago quarter. Operating cash flow exceeded capital expenditure, resulting in positive free cash flow, though the free cash flow margin showed a mixed trend relative to the two comparison periods.
Compared to the immediately preceding quarter, revenue and operating cash flow increased, capital expenditure rose, free cash flow improved, but the free cash flow margin declined. Compared to the same quarter one year earlier, all metrics improved, including a higher free cash flow margin.
Monitor the trend in free cash flow margin, which weakened sequentially despite higher revenue and free cash flow.