Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable sequentially and increased year-over-year, while free cash flow turned positive from a negative position in the prior quarter but declined compared to the same quarter last year.
- Operating cash flow improved significantly from the previous quarter, leading to a positive free cash flow margin despite slightly higher capital expenditure. Compared to the same quarter last year, operating cash flow was lower, resulting in a weaker free cash flow margin.
- Sequentially, cash conversion improved strongly as free cash flow swung from negative to positive. Year-over-year, cash conversion weakened as operating cash flow and free cash flow both declined.
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
$472.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$615.0M
Cash generated by operations before capital spending.
CapEx
$143.0M
Capital spending and related asset purchases.
FCF margin
18.5%
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 | $2.5B | $601.0M | $113.0M | $488.0M | 19.2% |
| 2023-09-30 | $2.5B | $862.0M | $85.0M | $777.0M | 31.1% |
| 2023-12-31 | $2.6B | $122.0M | $126.0M | -$4.0M | -0.2% |
| 2024-03-31 | $2.6B | $615.0M | $143.0M | $472.0M | 18.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | 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 Recovery
Operating cash flow rebounded sharply from the prior quarter, driving a swing to positive free cash flow. This improvement was the strongest driver of the quarter's cash conversion.
The recovery in operating cash flow was the primary factor in the improved cash conversion versus the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved significantly from the previous quarter, leading to a positive free cash flow margin despite slightly higher capital expenditure. Compared to the same quarter last year, operating cash flow was lower, resulting in a weaker free cash flow margin.
Sequentially, cash conversion improved strongly as free cash flow swung from negative to positive. Year-over-year, cash conversion weakened as operating cash flow and free cash flow both declined.
Monitor whether operating cash flow can sustain its recovery toward prior-year levels.