Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved year-over-year but weakened sequentially. The increase in operating cash flow from the prior year drove free cash flow higher despite a slight decline in revenue.
- Revenue was lower than the year-ago quarter, yet operating cash flow and free cash flow were higher, resulting in an improved free cash flow margin. Sequentially, both revenue and operating cash flow declined, leading to a lower margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the margin weakened. Compared to the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were higher, and the margin improved.
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
$410.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$440.0M
Cash generated by operations before capital spending.
CapEx
$29.5M
Capital spending and related asset purchases.
FCF margin
8.4%
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 | $5.6B | $228.2M | $39.6M | $188.6M | 3.4% |
| 2023-09-30 | $5.6B | $468.6M | $43.4M | $425.2M | 7.6% |
| 2023-12-31 | $5.0B | $536.5M | $33.5M | $503.0M | 10.0% |
| 2024-03-31 | $4.9B | $440.0M | $29.5M | $410.5M | 8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 190.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow growth
Operating cash flow increased from the prior year despite lower revenue, providing the primary support for higher free cash flow.
This improvement in cash generation strengthened the free cash flow margin year-over-year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the year-ago quarter, yet operating cash flow and free cash flow were higher, resulting in an improved free cash flow margin. Sequentially, both revenue and operating cash flow declined, leading to a lower margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all decreased, and the margin weakened. Compared to the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were higher, and the margin improved.
Monitor whether the lower capital expenditure trend continues or reverses.