Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive, driving free cash flow into positive territory for the first time in the comparable periods. Revenue increased while capital expenditure remained stable, resulting in a positive free cash flow margin.
- Revenue rose and operating cash flow improved from negative to positive, while capital expenditure was unchanged from the prior quarter and lower than a year ago. The combination produced positive free cash flow and a positive free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved from negative to positive, and free cash flow turned positive. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved from negative to positive, and free cash flow also turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$897.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$83.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$101.0M
Cash generated by operations before capital spending.
CapEx
$18.0M
Capital spending and related asset purchases.
FCF margin
2.7%
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 | $3.0B | $509.0M | $18.0M | $491.0M | 16.5% |
| 2023-09-30 | $2.8B | $599.0M | $19.0M | $580.0M | 20.9% |
| 2023-12-31 | $2.4B | -$239.0M | $18.0M | -$257.0M | -10.6% |
| 2024-03-31 | $3.1B | $101.0M | $18.0M | $83.0M | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | 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 Turnaround
Operating cash flow shifted from negative in both the prior quarter and the year-ago quarter to positive in the current quarter. This was the strongest observable driver of the improvement in free cash flow.
The positive operating cash flow directly enabled free cash flow to turn positive for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose and operating cash flow improved from negative to positive, while capital expenditure was unchanged from the prior quarter and lower than a year ago. The combination produced positive free cash flow and a positive free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow improved from negative to positive, and free cash flow turned positive. Versus the same quarter one year earlier, revenue was higher, operating cash flow improved from negative to positive, and free cash flow also turned positive.
Monitor whether operating cash flow can sustain its positive level in the coming quarter.