Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, while free cash flow improved dramatically from a negative position a year ago but declined from the prior quarter. The cash conversion margin strengthened year-over-year but weakened sequentially.
- Operating cash flow rose sharply from the year-ago quarter, and capital expenditure was lower, resulting in positive free cash flow with a margin that improved from negative to positive. However, compared to the prior quarter, operating cash flow fell and the free cash flow margin narrowed.
- Revenue was higher than both the preceding quarter and the same quarter last year. Operating cash flow and free cash flow were lower than the prior quarter but higher than the year-ago period, while capital expenditure decreased in both comparisons.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$643.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$120.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$252.7M
Cash generated by operations before capital spending.
CapEx
$131.9M
Capital spending and related asset purchases.
FCF margin
8.7%
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 | $1.3B | $262.1M | $163.0M | $99.1M | 7.5% |
| 2023-09-30 | $1.3B | $381.7M | $134.3M | $247.4M | 18.8% |
| 2023-12-31 | $1.3B | $322.1M | $145.7M | $176.4M | 13.3% |
| 2024-03-31 | $1.4B | $252.7M | $131.9M | $120.8M | 8.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | 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 and lower capital spending
Revenue increased from the prior quarter and the year-ago quarter, while capital expenditure was reduced in both periods. This combination supported the move to positive free cash flow from a year ago.
The improvement in free cash flow year-over-year is driven by higher revenue and lower capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose sharply from the year-ago quarter, and capital expenditure was lower, resulting in positive free cash flow with a margin that improved from negative to positive. However, compared to the prior quarter, operating cash flow fell and the free cash flow margin narrowed.
Revenue was higher than both the preceding quarter and the same quarter last year. Operating cash flow and free cash flow were lower than the prior quarter but higher than the year-ago period, while capital expenditure decreased in both comparisons.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite higher revenue.