Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased from the prior quarter, driven by higher operating cash flow, but remained well below the year-ago level. The free cash flow margin improved sequentially but weakened compared to the same quarter last year.
- Revenue declined from both the prior quarter and the year-ago quarter. Operating cash flow improved sequentially, leading to higher free cash flow, but the conversion rate was lower than a year ago as operating cash flow fell sharply from that period.
- Compared to the immediately preceding quarter, free cash flow and margin improved as operating cash flow rose despite lower revenue. Versus the same quarter one year earlier, free cash flow and margin weakened significantly due to a substantial drop in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$570.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$127.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$182.0M
Cash generated by operations before capital spending.
CapEx
$55.0M
Capital spending and related asset purchases.
FCF margin
7.0%
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 | $2.0B | $430.0M | $84.0M | $346.0M | 17.1% |
| 2023-09-30 | $1.4B | $20.0M | $24.0M | -$4.0M | -0.3% |
| 2023-12-31 | $2.0B | $153.0M | $52.0M | $101.0M | 5.1% |
| 2024-03-31 | $1.8B | $182.0M | $55.0M | $127.0M | 7.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -249.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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.
Operating Cash Flow Volatility
Operating cash flow increased from the prior quarter, providing a sequential boost to free cash flow, but it decreased substantially from the year-ago quarter, causing a sharp decline in free cash flow year over year.
The free cash flow margin improved sequentially but was much lower than a year ago, highlighting the variability in cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from both the prior quarter and the year-ago quarter. Operating cash flow improved sequentially, leading to higher free cash flow, but the conversion rate was lower than a year ago as operating cash flow fell sharply from that period.
Compared to the immediately preceding quarter, free cash flow and margin improved as operating cash flow rose despite lower revenue. Versus the same quarter one year earlier, free cash flow and margin weakened significantly due to a substantial drop in operating cash flow.
Monitor the trajectory of operating cash flow, which showed a large sequential improvement but remains far below the year-ago level.