Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved compared to both the preceding quarter and the year-ago quarter, resulting in a stronger free cash flow margin.
- Operating cash flow as a proportion of revenue increased relative to both the prior quarter and the year-ago quarter. Capital expenditure was lower than the year-ago quarter but slightly higher than the prior quarter, and free cash flow margin improved sequentially and year-over-year.
- Compared to the prior quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$583.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$152.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$209.2M
Cash generated by operations before capital spending.
CapEx
$56.9M
Capital spending and related asset purchases.
FCF margin
16.5%
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 | $871.3M | $190.3M | $59.0M | $131.3M | 15.1% |
| 2023-09-30 | $975.0M | $269.2M | $50.4M | $218.8M | 22.4% |
| 2023-12-31 | $1.0B | $133.6M | $52.5M | $81.1M | 7.8% |
| 2024-03-31 | $921.0M | $209.2M | $56.9M | $152.3M | 16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.2% | 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 Improvement
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, even as revenue declined sequentially. This was the strongest observable driver of the higher free cash flow and margin.
The improvement in operating cash flow directly supported a higher free cash flow and a stronger 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 as a proportion of revenue increased relative to both the prior quarter and the year-ago quarter. Capital expenditure was lower than the year-ago quarter but slightly higher than the prior quarter, and free cash flow margin improved sequentially and year-over-year.
Compared to the prior quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
Monitor the trend in capital expenditure relative to operating cash flow, as it was higher than the prior quarter despite lower revenue.