Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow exceeded revenue in the current quarter, resulting in a free cash flow margin above one hundred percent. Both operating cash flow and free cash flow were lower than the preceding quarter but higher than the same quarter one year earlier.
- Revenue was lower than operating cash flow, indicating cash conversion was favorable as cash collected outpaced recognized revenue. Capital expenditure was relatively small compared to operating cash flow, allowing the majority of operating cash flow to convert into free cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, and the free cash flow margin improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$450.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$482.0M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
133.9%
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 | $332.0M | $630.0M | $32.0M | $598.0M | 180.1% |
| 2023-09-30 | $338.0M | $999.0M | $23.0M | $976.0M | 288.8% |
| 2023-12-31 | $353.0M | $898.0M | $60.0M | $838.0M | 237.4% |
| 2024-03-31 | $336.0M | $482.0M | $32.0M | $450.0M | 133.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.5% | 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 materially higher than revenue, a pattern not seen in the same quarter last year. This was the strongest observable driver supporting free cash flow generation in the current quarter.
It enabled free cash flow to exceed revenue even with moderate capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than operating cash flow, indicating cash conversion was favorable as cash collected outpaced recognized revenue. Capital expenditure was relatively small compared to operating cash flow, allowing the majority of operating cash flow to convert into free cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were lower, leading to a lower free cash flow margin. Compared to the same quarter one year earlier, operating cash flow and free cash flow were higher, and the free cash flow margin improved significantly.
Monitor whether operating cash flow can sustain its level relative to revenue in future quarters.