Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened in the current quarter compared to both the previous quarter and the same quarter a year earlier, despite stable revenue. Operating cash flow decreased while capital expenditure increased, contributing to lower free cash flow.
- Revenue remained stable, but operating cash flow was lower relative to revenue, while capital expenditure increased, resulting in a lower free cash flow and a weakened free cash flow margin compared to prior periods.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by higher capital expenditure and reduced operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were also weakened, with capital expenditure higher and operating cash flow lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$203.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$253.2M
Cash generated by operations before capital spending.
CapEx
$49.6M
Capital spending and related asset purchases.
FCF margin
20.2%
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 | $976.6M | $413.8M | $19.9M | $393.8M | 40.3% |
| 2023-09-30 | $1.0B | $395.9M | $22.0M | $373.9M | 36.5% |
| 2023-12-31 | $1.1B | $272.1M | $33.7M | $238.4M | 22.3% |
| 2024-03-31 | $1.0B | $253.2M | $49.6M | $203.6M | 20.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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.
Capital Expenditure Increase
Capital expenditure rose compared to both the prior quarter and the year-ago quarter, while operating cash flow decreased, leading to lower free cash flow. This shift in cash allocation is a notable change in the current period.
The higher capital expenditure reduced free cash flow and margin, making it the strongest observable factor in the quarter's cash generation performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable, but operating cash flow was lower relative to revenue, while capital expenditure increased, resulting in a lower free cash flow and a weakened free cash flow margin compared to prior periods.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by higher capital expenditure and reduced operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were also weakened, with capital expenditure higher and operating cash flow lower.
The increase in capital expenditure warrants monitoring as it has a direct impact on free cash flow generation.