Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the first quarter, free cash flow margin improved sequentially but declined compared to the same period last year. The sequential improvement was supported by lower capital expenditure and higher operating cash flow.
- Revenue was stable from the prior quarter, while operating cash flow increased and capital expenditure decreased, leading to higher free cash flow and a stronger margin. Year over year, revenue was higher but operating cash flow was lower and capital expenditure was higher, resulting in lower free cash flow and margin.
- Sequentially, free cash flow improved significantly as capital spending dropped and cash generation strengthened. Year over year, free cash flow weakened despite higher revenue, due to reduced operating cash flow and increased capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$775.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$216.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$263.0M
Cash generated by operations before capital spending.
CapEx
$46.3M
Capital spending and related asset purchases.
FCF margin
14.4%
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 | $1.5B | $236.1M | $38.2M | $197.9M | 13.6% |
| 2023-09-30 | $1.5B | $285.9M | $58.3M | $227.6M | 15.6% |
| 2023-12-31 | $1.5B | $235.5M | $102.0M | $133.5M | 8.7% |
| 2024-03-31 | $1.5B | $263.0M | $46.3M | $216.7M | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Capital Expenditure
Capital expenditure decreased significantly from the previous quarter, providing a strong boost to free cash flow and margin improvement.
This reduction was the primary factor behind the sequential free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable from the prior quarter, while operating cash flow increased and capital expenditure decreased, leading to higher free cash flow and a stronger margin. Year over year, revenue was higher but operating cash flow was lower and capital expenditure was higher, resulting in lower free cash flow and margin.
Sequentially, free cash flow improved significantly as capital spending dropped and cash generation strengthened. Year over year, free cash flow weakened despite higher revenue, due to reduced operating cash flow and increased capital expenditure.
Monitor capital expenditure trends, as it decreased sharply from the prior quarter but remained above the year-ago level.