Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially but improved significantly compared to the same quarter last year. Operating cash flow declined from the prior quarter while capital expenditure remained stable, leading to lower free cash flow.
- Revenue was stable across periods. Operating cash flow was lower than the prior quarter but higher than the same quarter one year earlier. Capital expenditure was similar to the prior quarter and lower than the year-ago quarter. As a result, free cash flow and free cash flow margin weakened sequentially but improved year over year.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$413.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$50.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$129.9M
Cash generated by operations before capital spending.
CapEx
$79.1M
Capital spending and related asset purchases.
FCF margin
5.0%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $1.1B | $148.1M | $67.4M | $80.7M | 7.6% |
| 2023-09-30 | $1.0B | $205.4M | $65.9M | $139.5M | 13.6% |
| 2023-12-30 | $1.0B | $220.9M | $78.3M | $142.6M | 14.1% |
| 2024-03-30 | $1.0B | $129.9M | $79.1M | $50.7M | 5.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | 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
Operating cash flow decreased from the prior quarter but increased from the year-ago quarter. This change was the strongest observable driver of free cash flow movement.
The sequential decline in operating cash flow was the primary reason for the lower free cash flow margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable across periods. Operating cash flow was lower than the prior quarter but higher than the same quarter one year earlier. Capital expenditure was similar to the prior quarter and lower than the year-ago quarter. As a result, free cash flow and free cash flow margin weakened sequentially but improved year over year.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, and free cash flow margin improved.
Monitor the trend in operating cash flow, as its sequential decline was the primary factor behind the lower free cash flow.