Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter, marking a significant improvement from the same quarter a year earlier, though it weakened notably from the prior quarter. Revenue increased both year-over-year and sequentially.
- Revenue growth contributed to a positive operating cash flow, while capital expenditure was contained. The free cash flow margin improved from a negative level a year ago to a positive figure, but declined from the prior quarter.
- Compared with the prior quarter, free cash flow and operating cash flow were substantially lower, and the margin contracted. Versus the same quarter a year earlier, all metrics improved markedly, with free cash flow and operating cash flow moving from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$790.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$994.0M
Cash generated by operations before capital spending.
CapEx
$204.0M
Capital spending and related asset purchases.
FCF margin
8.8%
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 | $9.5B | $485.0M | $92.0M | $393.0M | 4.1% |
| 2023-09-30 | $9.3B | $1.8B | $222.0M | $1.6B | 17.2% |
| 2023-12-31 | $8.5B | $3.1B | $250.0M | $2.9B | 33.8% |
| 2024-03-31 | $9.0B | $994.0M | $204.0M | $790.0M | 8.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 51.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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.
Cash flow recovery but volatility
Revenue growth and a year-over-year improvement in operating cash flow were the strongest observable drivers, turning free cash flow positive. However, the sharp sequential decline highlights notable volatility.
The year-over-year recovery is positive, but the sequential weakening warrants continued monitoring of cash generation consistency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth contributed to a positive operating cash flow, while capital expenditure was contained. The free cash flow margin improved from a negative level a year ago to a positive figure, but declined from the prior quarter.
Compared with the prior quarter, free cash flow and operating cash flow were substantially lower, and the margin contracted. Versus the same quarter a year earlier, all metrics improved markedly, with free cash flow and operating cash flow moving from negative to positive.
Monitor whether operating cash flow can sustain its positive trajectory given the sharp sequential decline from the prior quarter.