Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than the same quarter last year. Free cash flow was lower sequentially but improved compared to the year-ago period, reflecting a mixed cash conversion profile.
- Operating cash flow of one hundred thirty-two million against revenue of three point four billion yielded a free cash flow margin of three point three percent. Capital expenditure was modest relative to operating cash flow, supporting positive free cash flow.
- Compared to the immediately preceding quarter, free cash flow was lower as operating cash flow decreased substantially, despite a stable revenue base and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow improved significantly from a negative position, driven by stronger operating cash flow on higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$112.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$132.3M
Cash generated by operations before capital spending.
CapEx
$20.3M
Capital spending and related asset purchases.
FCF margin
3.3%
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 | $3.0B | $299.5M | $13.4M | $286.1M | 9.4% |
| 2023-09-30 | $3.2B | $261.0M | $19.7M | $241.2M | 7.5% |
| 2023-12-31 | $3.4B | $423.8M | $22.1M | $401.7M | 11.7% |
| 2024-03-31 | $3.4B | $132.3M | $20.3M | $112.0M | 3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Revenue Growth Supporting Cash Generation
Revenue matched the prior quarter's level and increased from the year-ago quarter, providing a larger base for operating cash flow. This improvement was the strongest observable factor behind the year-over-year free cash flow turnaround.
Higher revenue directly supported operating cash flow, which shifted from negative to positive year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of one hundred thirty-two million against revenue of three point four billion yielded a free cash flow margin of three point three percent. Capital expenditure was modest relative to operating cash flow, supporting positive free cash flow.
Compared to the immediately preceding quarter, free cash flow was lower as operating cash flow decreased substantially, despite a stable revenue base and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow improved significantly from a negative position, driven by stronger operating cash flow on higher revenue.
Monitor whether operating cash flow can sustain or recover toward prior-quarter levels given the current revenue run rate.