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, but operating cash flow declined, pulling free cash flow lower. Cash conversion weakened as a result, with the free cash flow margin contracting versus both periods.
- Despite higher revenue, operating cash flow fell, and capital expenditure rose, leading to a lower free cash flow. The free cash flow margin narrowed because free cash flow did not keep pace with revenue growth.
- Free cash flow and free cash flow margin were lower than both the immediately preceding quarter and the same quarter one year ago. Operating cash flow also weakened versus both periods, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$472.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$67.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$71.0M
Cash generated by operations before capital spending.
CapEx
$4.0M
Capital spending and related asset purchases.
FCF margin
15.4%
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 | $398.7M | $122.6M | $792000 | $121.8M | 30.6% |
| 2023-09-30 | $389.7M | $164.0M | $1.1M | $163.0M | 41.8% |
| 2023-12-31 | $382.1M | $122.1M | $1.4M | $120.8M | 31.6% |
| 2024-03-31 | $433.8M | $71.0M | $4.0M | $67.0M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | 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 Contraction
Revenue rose, but operating cash flow declined substantially, outweighing a slight increase in capital expenditure and causing free cash flow to fall. This shift drove the free cash flow margin lower.
If operating cash flow continues to weaken, free cash flow generation may remain under pressure despite revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Despite higher revenue, operating cash flow fell, and capital expenditure rose, leading to a lower free cash flow. The free cash flow margin narrowed because free cash flow did not keep pace with revenue growth.
Free cash flow and free cash flow margin were lower than both the immediately preceding quarter and the same quarter one year ago. Operating cash flow also weakened versus both periods, while capital expenditure was higher.
Monitor whether operating cash flow can recover toward prior levels, as it was the primary reason for the decreased free cash flow.