Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive, lifting free cash flow and margin versus the same quarter last year. Sequentially, cash generation moderated as revenue and operating cash flow declined from the prior quarter.
- Revenue was relatively stable year over year, while operating cash flow improved significantly, leading to positive free cash flow and margin. Capital expenditure remained modest relative to operating cash flow.
- Compared to the same quarter last year, cash conversion improved from negative to positive, with higher operating cash flow and free cash flow. Versus the prior quarter, revenue, operating cash flow, and free cash flow were lower, and the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$520.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$85.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$111.9M
Cash generated by operations before capital spending.
CapEx
$26.8M
Capital spending and related asset purchases.
FCF margin
9.6%
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 | $83.1M | $29.9M | $53.2M | 5.3% |
| 2023-09-30 | $1.1B | $140.1M | $23.8M | $116.3M | 10.9% |
| 2023-12-31 | $1.1B | $316.9M | $51.3M | $265.6M | 25.0% |
| 2024-03-31 | $889.3M | $111.9M | $26.8M | $85.1M | 9.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 324.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | 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 Recovery
Operating cash flow turned from negative in the same quarter last year to positive, which was the primary factor behind free cash flow turning positive despite stable revenue.
This shift restored the company to a positive free cash flow position and improved its cash conversion capability compared to a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was relatively stable year over year, while operating cash flow improved significantly, leading to positive free cash flow and margin. Capital expenditure remained modest relative to operating cash flow.
Compared to the same quarter last year, cash conversion improved from negative to positive, with higher operating cash flow and free cash flow. Versus the prior quarter, revenue, operating cash flow, and free cash flow were lower, and the margin weakened.
Monitor whether free cash flow margin sustains its positive level amid sequential revenue declines.