Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter and year ago, driving higher operating cash flow. With capital expenditure lower, free cash flow grew and the margin improved, reflecting stronger cash conversion.
- Operating cash flow rose as revenue expanded, while capital expenditure declined. This combination lifted free cash flow and improved the free cash flow margin. The company's filing highlighted its liquidity resources and accumulated deficit.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved, while capital expenditure was lower. The same trends held when compared to the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$536.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$553.0M
Cash generated by operations before capital spending.
CapEx
$17.0M
Capital spending and related asset purchases.
FCF margin
21.3%
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 | $2.1B | $393.0M | $27.0M | $366.0M | 17.2% |
| 2023-09-30 | $2.2B | $398.0M | $28.0M | $370.0M | 17.1% |
| 2023-12-31 | $2.3B | $485.0M | $29.0M | $456.0M | 19.8% |
| 2024-03-31 | $2.5B | $553.0M | $17.0M | $536.0M | 21.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2330.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Revenue Growth
Revenue was higher than both prior periods, supporting a corresponding increase in operating cash flow. Lower capital expenditure provided additional support.
The combined effect drove an improved free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose as revenue expanded, while capital expenditure declined. This combination lifted free cash flow and improved the free cash flow margin. The company's filing highlighted its liquidity resources and accumulated deficit.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved, while capital expenditure was lower. The same trends held when compared to the same quarter one year earlier.
Monitor the trajectory of capital expenditure, which has decreased, and its potential impact on future free cash flow.