Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved sharply versus both the prior quarter and the same quarter last year, driven by a steep reduction in capital expenditure. Revenue was slightly higher than the prior quarter but lower than a year ago, while operating cash flow declined from the prior quarter but remained near the year-ago level.
- Revenue was modestly higher than the prior quarter but lower than a year ago. Operating cash flow decreased from the prior quarter yet stayed close to the year-ago figure. Capital expenditure fell substantially from both comparison periods, resulting in free cash flow and free cash flow margin that were significantly higher than both the prior quarter and the same quarter last year.
- Compared with the prior quarter, free cash flow and margin were higher, while operating cash flow was lower and capital expenditure was lower. Versus the same quarter last year, free cash flow and margin were higher, revenue was lower, operating cash flow was slightly lower, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$552.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$599.0M
Cash generated by operations before capital spending.
CapEx
$47.0M
Capital spending and related asset purchases.
FCF margin
1200.0%
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 | $139.0M | $1.1B | $379.0M | $740.0M | 532.4% |
| 2023-09-30 | $90.0M | $533.0M | $347.0M | $186.0M | 206.7% |
| 2023-12-31 | $43.0M | $868.0M | $824.0M | $44.0M | 102.3% |
| 2024-03-31 | $46.0M | $599.0M | $47.0M | $552.0M | 1200.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 177.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 102.2% | 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.
Capital expenditure reduction
Capital expenditure decreased significantly compared to both the prior quarter and the same quarter last year, leading to a substantial increase in free cash flow and free cash flow margin.
The lower capital spending was the strongest observable driver of the improved free cash flow generation in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was modestly higher than the prior quarter but lower than a year ago. Operating cash flow decreased from the prior quarter yet stayed close to the year-ago figure. Capital expenditure fell substantially from both comparison periods, resulting in free cash flow and free cash flow margin that were significantly higher than both the prior quarter and the same quarter last year.
Compared with the prior quarter, free cash flow and margin were higher, while operating cash flow was lower and capital expenditure was lower. Versus the same quarter last year, free cash flow and margin were higher, revenue was lower, operating cash flow was slightly lower, and capital expenditure was lower.
Monitor whether capital expenditure remains at this reduced level in upcoming quarters, as it was the primary factor behind the current quarter's free cash flow improvement.