Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Fiserv, a global provider of payments and financial technology, reported revenue that was stable compared to the prior quarter and higher than the same quarter last year. However, free cash flow margin weakened significantly both sequentially and year-over-year, reflecting lower operating cash flow and higher capital expenditure.
- Free cash flow as a percentage of revenue contracted sharply, driven by lower operating cash generation despite stable revenue, and an increase in capital spending. This indicates a less efficient cash conversion cycle in the current quarter.
- Compared to the preceding quarter, free cash flow decreased notably as revenue was flat but operating cash flow was lower and capital spending was higher. Versus the same quarter a year earlier, revenue improved but operating cash flow declined, resulting in a weaker free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$411.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$831.0M
Cash generated by operations before capital spending.
CapEx
$420.0M
Capital spending and related asset purchases.
FCF margin
8.4%
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 | $4.8B | $878.0M | $340.0M | $538.0M | 11.3% |
| 2023-09-30 | $4.9B | $1.6B | $355.0M | $1.2B | 24.7% |
| 2023-12-31 | $4.9B | $1.6B | $354.0M | $1.2B | 25.2% |
| 2024-03-31 | $4.9B | $831.0M | $420.0M | $411.0M | 8.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.6% | 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 Weakening
Operating cash flow fell markedly compared to both the sequential and year-ago periods, even though revenue remained roughly stable or increased. This was the strongest contributor to the decline in free cash flow margin.
Unless operating cash conversion improves, free cash flow generation will likely remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow as a percentage of revenue contracted sharply, driven by lower operating cash generation despite stable revenue, and an increase in capital spending. This indicates a less efficient cash conversion cycle in the current quarter.
Compared to the preceding quarter, free cash flow decreased notably as revenue was flat but operating cash flow was lower and capital spending was higher. Versus the same quarter a year earlier, revenue improved but operating cash flow declined, resulting in a weaker free cash flow margin.
Monitor the trend in capital expenditure, which increased compared to both the prior quarter and the year-ago quarter.