Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the previous quarter and the same quarter a year ago. However, free cash flow margin improved significantly compared to the year-ago quarter, driven by higher operating cash flow relative to revenue.
- Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin increased substantially versus the prior year, reflecting a stronger conversion of revenue into cash after capex.
- Compared to the previous quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter a year earlier, revenue was lower, while operating cash flow, free cash flow, and free cash flow margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$660.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$155.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$177.8M
Cash generated by operations before capital spending.
CapEx
$22.1M
Capital spending and related asset purchases.
FCF margin
20.6%
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 |
|---|---|---|---|---|---|
| 2023-07-02 | $1.2B | $30.4M | $58.9M | -$28.5M | -2.4% |
| 2023-10-01 | $1.5B | $215.7M | $48.3M | $167.4M | 11.1% |
| 2023-12-31 | $1.3B | $390.7M | $24.9M | $365.8M | 28.4% |
| 2024-03-31 | $757.3M | $177.8M | $22.1M | $155.7M | 20.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 267.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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 Strength
Operating cash flow was significantly higher than the year-ago quarter despite lower revenue, indicating a more efficient cash conversion from the same or lower revenue base.
This was the primary driver behind the year-over-year improvement in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin increased substantially versus the prior year, reflecting a stronger conversion of revenue into cash after capex.
Compared to the previous quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter a year earlier, revenue was lower, while operating cash flow, free cash flow, and free cash flow margin were higher.
Monitor whether operating cash flow can sustain its improvement relative to revenue in the coming quarters.