Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive compared to a year ago, though it was lower than the immediately preceding quarter. The free cash flow margin improved from negative to positive but remained well below the prior quarter's high level.
- Revenue was higher than the previous quarter but lower than the same quarter last year. Operating cash flow and free cash flow were positive, a significant improvement from the negative levels a year earlier, but both were lower than the prior quarter. Capital expenditure was higher than both comparison periods. The resulting free cash flow margin was positive but low relative to the prior quarter.
- Compared to the previous quarter, revenue increased but operating cash flow and free cash flow decreased sharply, leading to a much lower free cash flow margin. Compared to the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow improved from negative to positive, resulting in a positive margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$215.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$448.0M
Cash generated by operations before capital spending.
CapEx
$233.0M
Capital spending and related asset purchases.
FCF margin
2.6%
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 | $9.1B | $1.4B | $233.0M | $1.1B | 12.3% |
| 2023-09-30 | $9.2B | $1.8B | $249.0M | $1.6B | 16.9% |
| 2023-12-31 | $5.8B | $3.0B | $66.0M | $2.9B | 49.9% |
| 2024-03-31 | $8.2B | $448.0M | $233.0M | $215.0M | 2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 14.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash flow turnaround from prior year
Operating cash flow moved from negative to positive compared to the prior year, and free cash flow followed suit. The filing context indicates management focuses on increasing operating cash flows through revenue growth, margin expansion, and improved working capital turnover.
This shift eliminated the negative free cash flow margin seen a year ago and provided positive cash flow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the previous quarter but lower than the same quarter last year. Operating cash flow and free cash flow were positive, a significant improvement from the negative levels a year earlier, but both were lower than the prior quarter. Capital expenditure was higher than both comparison periods. The resulting free cash flow margin was positive but low relative to the prior quarter.
Compared to the previous quarter, revenue increased but operating cash flow and free cash flow decreased sharply, leading to a much lower free cash flow margin. Compared to the same quarter one year earlier, revenue was slightly lower, but operating cash flow and free cash flow improved from negative to positive, resulting in a positive margin.
Monitor the sustainability of positive operating cash flow given the large sequential decline from the previous quarter.