Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable sequentially while free cash flow weakened compared to the prior quarter, but both revenue and free cash flow improved year over year. The free cash flow margin narrowed from the previous quarter but was slightly above the year-ago level.
- Operating cash flow declined sequentially, but a significant reduction in capital expenditure helped support free cash flow. The resulting free cash flow margin was lower than the previous quarter yet moderately higher than a year ago.
- Compared with the immediately preceding quarter, operating cash flow was lower and free cash flow weakened, even though revenue was unchanged. Versus the same quarter one year earlier, operating cash flow improved slightly, capital expenditure was notably lower, and free cash flow strengthened, with margins stable year over year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$330.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$346.0M
Cash generated by operations before capital spending.
CapEx
$16.0M
Capital spending and related asset purchases.
FCF margin
12.8%
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 | $2.7B | $464.0M | $30.0M | $434.0M | 16.3% |
| 2023-09-30 | $2.7B | $687.0M | $35.0M | $652.0M | 24.4% |
| 2023-12-31 | $2.6B | $465.0M | $42.0M | $423.0M | 16.2% |
| 2024-03-31 | $2.6B | $346.0M | $16.0M | $330.0M | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Capital Expenditure Reduction
Capital expenditure dropped sharply compared to both the prior quarter and the year-ago quarter, providing a notable boost to free cash flow despite lower operating cash flow.
If capital expenditure remains low, further free cash flow generation will depend heavily on sustaining or improving operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined sequentially, but a significant reduction in capital expenditure helped support free cash flow. The resulting free cash flow margin was lower than the previous quarter yet moderately higher than a year ago.
Compared with the immediately preceding quarter, operating cash flow was lower and free cash flow weakened, even though revenue was unchanged. Versus the same quarter one year earlier, operating cash flow improved slightly, capital expenditure was notably lower, and free cash flow strengthened, with margins stable year over year.
Monitor whether operating cash flow can recover from its sequential decline while capital expenditure remains at a reduced level.