Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from a negative position in the prior quarter, resulting in positive free cash flow for the first time in two comparisons. Free cash flow margin improved markedly versus both the preceding quarter and the same quarter one year earlier.
- Revenue was stable, while operating cash flow improved substantially, leading to a higher free cash flow and a positive free cash flow margin. Capital expenditure was slightly higher than both prior periods, but the increase in operating cash flow more than offset this.
- Compared to the immediately preceding quarter, operating and free cash flow improved from negative to positive. Compared to the same quarter one year earlier, both operating and free cash flow also improved from weak negative levels to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$513.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$156.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$197.0M
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
4.9%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $3.1B | $274.0M | $37.0M | $237.0M | 7.6% |
| 2023-09-30 | $3.2B | $231.0M | $40.0M | $191.0M | 6.0% |
| 2023-12-30 | $3.0B | -$32.0M | $39.0M | -$71.0M | -2.4% |
| 2024-03-30 | $3.2B | $197.0M | $41.0M | $156.0M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 167.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 Reversal
Operating cash flow moved from a negative amount in the prior quarter to a positive amount this quarter, marking the strongest observable change. The free cash flow margin turned positive for the first time in the available comparisons.
This quarter's positive free cash flow, supported by stronger cash generation, contrasts with the negative free cash flow in both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, while operating cash flow improved substantially, leading to a higher free cash flow and a positive free cash flow margin. Capital expenditure was slightly higher than both prior periods, but the increase in operating cash flow more than offset this.
Compared to the immediately preceding quarter, operating and free cash flow improved from negative to positive. Compared to the same quarter one year earlier, both operating and free cash flow also improved from weak negative levels to positive.
Monitor the level of capital expenditure relative to operating cash flow, as it increased while operating cash flow swung positive.