Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were substantially higher than both the prior quarter and the year-ago quarter, while revenue was relatively stable. The free cash flow margin improved markedly compared to the prior quarter but weakened slightly versus the same quarter last year.
- Revenue was nearly unchanged from the prior quarter, yet operating cash flow rose sharply, leading to a much higher free cash flow and an expanded free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, supporting the conversion of revenue into cash.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, capital expenditure was lower, and the free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, capital expenditure was higher, and the free cash flow margin was slightly weaker.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$430.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$465.6M
Cash generated by operations before capital spending.
CapEx
$35.1M
Capital spending and related asset purchases.
FCF margin
1427.9%
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 | $22.2M | $347.9M | $32.9M | $315.0M | 1418.5% |
| 2023-09-30 | $28.0M | $408.4M | $18.6M | $389.9M | 1391.4% |
| 2023-12-31 | $30.4M | $364.5M | $71.0M | $293.5M | 966.2% |
| 2024-03-31 | $30.1M | $465.6M | $35.1M | $430.5M | 1427.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 202.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 116.4% | 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.
Operating Cash Flow Surge
Operating cash flow rose sharply from both the prior quarter and the year-ago quarter, despite revenue being essentially flat compared to the prior quarter. This increase was the primary factor behind the higher free cash flow.
Higher operating cash flow directly drove free cash flow higher, resulting in a free cash flow margin that improved sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was nearly unchanged from the prior quarter, yet operating cash flow rose sharply, leading to a much higher free cash flow and an expanded free cash flow margin. Capital expenditure was lower than the prior quarter but higher than the year-ago quarter, supporting the conversion of revenue into cash.
Compared to the prior quarter, operating cash flow and free cash flow were higher, capital expenditure was lower, and the free cash flow margin improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, capital expenditure was higher, and the free cash flow margin was slightly weaker.
Monitor the relationship between capital expenditure and operating cash flow, as a higher capital expenditure level relative to the year-ago quarter contributed to a slightly lower free cash flow margin.