Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter and stable compared to the same quarter last year. Free cash flow and free cash flow margin improved year over year and were slightly higher than the previous quarter, supported by lower capital expenditure sequentially.
- Cash conversion strengthened year over year as operating cash flow increased while revenue remained stable, resulting in higher free cash flow. Capital expenditure was lower than the prior quarter but higher than a year ago, affecting the overall conversion rate.
- Compared to the prior quarter, operating cash flow decreased but capital expenditure fell more, allowing free cash flow to rise slightly. Compared to the same quarter last year, operating cash flow and free cash flow were both higher, with free cash flow margin showing improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$202.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$318.3M
Cash generated by operations before capital spending.
CapEx
$115.7M
Capital spending and related asset purchases.
FCF margin
3.5%
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 | $5.9B | $259.5M | $117.2M | $142.3M | 2.4% |
| 2023-09-30 | $5.8B | $625.4M | $144.5M | $480.9M | 8.3% |
| 2023-12-31 | $5.6B | $353.2M | $162.8M | $190.3M | 3.4% |
| 2024-03-31 | $5.8B | $318.3M | $115.7M | $202.6M | 3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Improved Operating Cash Generation
Operating cash flow was higher than the year-ago quarter, driving free cash flow improvement despite higher capital expenditure. The filing noted the company's strong liquidity and plans for continued capital investment to support growth.
This improvement in operating cash flow provides greater financial flexibility for reinvestment and returning capital to shareholders.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion strengthened year over year as operating cash flow increased while revenue remained stable, resulting in higher free cash flow. Capital expenditure was lower than the prior quarter but higher than a year ago, affecting the overall conversion rate.
Compared to the prior quarter, operating cash flow decreased but capital expenditure fell more, allowing free cash flow to rise slightly. Compared to the same quarter last year, operating cash flow and free cash flow were both higher, with free cash flow margin showing improvement.
Monitor the trend in capital expenditure, which decreased from the prior quarter but increased year over year, as it directly impacts free cash flow.