Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was broadly stable versus both prior periods. Free cash flow turned positive sequentially but remained lower than the prior year.
- Operating cash flow recovered sequentially while capital expenditure was roughly flat, driving free cash flow from negative to positive. The free cash flow margin improved but remained modest relative to the prior year.
- Compared to the previous quarter, operating cash flow was higher and free cash flow improved from negative to positive. Versus the same quarter last year, operating cash flow was lower, capital expenditure was slightly lower, and free cash flow was weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$225.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$24.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$117.4M
Cash generated by operations before capital spending.
CapEx
$93.2M
Capital spending and related asset purchases.
FCF margin
2.0%
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 | $1.2B | $181.5M | $93.1M | $88.5M | 7.3% |
| 2023-09-30 | $1.1B | $198.8M | $62.2M | $136.6M | 13.0% |
| 2023-12-31 | $1.1B | $67.2M | $91.5M | -$24.3M | -2.1% |
| 2024-03-31 | $1.2B | $117.4M | $93.2M | $24.2M | 2.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -183.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.3B | 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 recoverability
Operating cash flow improved sequentially but remained well below the prior year quarter. This shift was the strongest observable driver of the free cash flow change from negative to positive.
Sustained improvement in cash conversion from operations would support continued positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow recovered sequentially while capital expenditure was roughly flat, driving free cash flow from negative to positive. The free cash flow margin improved but remained modest relative to the prior year.
Compared to the previous quarter, operating cash flow was higher and free cash flow improved from negative to positive. Versus the same quarter last year, operating cash flow was lower, capital expenditure was slightly lower, and free cash flow was weaker.
Monitor the trajectory of operating cash flow relative to the prior year period, as it was notably lower despite similar revenue.