Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to the same quarter one year earlier, supported by higher revenue and lower capital expenditure. Compared to the immediately preceding quarter, the margin was slightly lower with operating cash flow relatively stable.
- Revenue was higher year over year, and operating cash flow increased while capital expenditure decreased, leading to an improved free cash flow margin. The company's liquidity is supported by operating cash flow and debt, with capital allocated first to operations, then growth investment, and finally stockholder returns.
- Compared to the prior quarter, revenue was stable, operating cash flow and free cash flow were slightly lower, capital expenditure was slightly higher, and free cash flow margin weakened marginally. Versus the year-ago quarter, revenue, operating cash flow, and free cash flow were higher, capital expenditure was lower, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$292.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$297.2M
Cash generated by operations before capital spending.
CapEx
$4.4M
Capital spending and related asset purchases.
FCF margin
26.4%
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 | $1.0B | $198.0M | $5.8M | $192.2M | 18.3% |
| 2023-09-30 | $1.1B | $281.6M | $9.4M | $272.2M | 25.4% |
| 2023-12-31 | $1.1B | $297.7M | $4.0M | $293.7M | 26.7% |
| 2024-03-31 | $1.1B | $297.2M | $4.4M | $292.8M | 26.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Capital Expenditure Reduction
Capital expenditure was lower compared to the year-ago quarter, contributing directly to a higher free cash flow margin alongside revenue growth.
This reduction in capital spending supported free cash flow expansion and margin improvement this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher year over year, and operating cash flow increased while capital expenditure decreased, leading to an improved free cash flow margin. The company's liquidity is supported by operating cash flow and debt, with capital allocated first to operations, then growth investment, and finally stockholder returns.
Compared to the prior quarter, revenue was stable, operating cash flow and free cash flow were slightly lower, capital expenditure was slightly higher, and free cash flow margin weakened marginally. Versus the year-ago quarter, revenue, operating cash flow, and free cash flow were higher, capital expenditure was lower, and the margin improved.
Monitor capital expenditure levels, which were lower than the year-ago quarter and supported free cash flow growth.