Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow improved from negative a year ago but weakened sharply from the preceding quarter.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure increased from the prior quarter but decreased year over year, resulting in free cash flow that was positive but significantly lower than the preceding quarter.
- Compared to the prior quarter, free cash flow margin weakened substantially as operating cash flow fell while capital expenditure rose. Compared to the same quarter last year, free cash flow margin improved from negative to positive, driven by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$947.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$50.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$154.0M
Cash generated by operations before capital spending.
CapEx
$104.0M
Capital spending and related asset purchases.
FCF margin
2.1%
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 | $2.3B | $444.0M | $104.0M | $340.0M | 14.5% |
| 2023-09-30 | $2.3B | $207.0M | $105.0M | $102.0M | 4.4% |
| 2023-12-31 | $2.3B | $527.0M | $72.0M | $455.0M | 19.9% |
| 2024-03-31 | $2.4B | $154.0M | $104.0M | $50.0M | 2.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 25.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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.
Year-over-year free cash flow recovery
Free cash flow turned positive compared to a year ago, supported by higher operating cash flow and lower capital expenditure. This marks a reversal from the negative free cash flow in the same quarter last year.
The improvement in free cash flow from a year ago strengthens the company's cash generation profile relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure increased from the prior quarter but decreased year over year, resulting in free cash flow that was positive but significantly lower than the preceding quarter.
Compared to the prior quarter, free cash flow margin weakened substantially as operating cash flow fell while capital expenditure rose. Compared to the same quarter last year, free cash flow margin improved from negative to positive, driven by higher operating cash flow and lower capital expenditure.
Monitor the level of operating cash flow relative to revenue, as it declined from the prior quarter despite higher revenue.