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 and margin both improved compared to the preceding quarter and the same quarter one year earlier. The increase in operating cash flow was the primary factor behind the higher free cash flow, while capital expenditure decreased from the prior quarter but rose from the year-ago period.
- Revenue was higher than both the prior quarter and the year-ago quarter, and operating cash flow increased at a faster pace, resulting in a higher operating cash flow margin. Capital expenditure declined sequentially but was higher year over year, yet free cash flow still grew and its margin widened.
- Sequentially, free cash flow margin improved modestly, while year over year it strengthened substantially. The current quarter's free cash flow was higher than both the preceding quarter and the same quarter one year earlier, with operating cash flow being the main driver of the improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$951.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$58.0M
Capital spending and related asset purchases.
FCF margin
34.0%
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 | $2.3B | $1.2B | $40.0M | $1.1B | 47.6% |
| 2023-09-30 | $2.4B | $768.0M | $43.0M | $725.0M | 29.8% |
| 2023-12-31 | $2.7B | $969.0M | $86.0M | $883.0M | 33.1% |
| 2024-03-31 | $2.8B | $1.0B | $58.0M | $951.0M | 34.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 124.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.1B | 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 growth
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, outpacing revenue growth. This allowed free cash flow to rise even with higher capital expenditure from a year ago.
Higher operating cash flow relative to revenue drove the improvement in free cash flow margin, supporting overall cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter, and operating cash flow increased at a faster pace, resulting in a higher operating cash flow margin. Capital expenditure declined sequentially but was higher year over year, yet free cash flow still grew and its margin widened.
Sequentially, free cash flow margin improved modestly, while year over year it strengthened substantially. The current quarter's free cash flow was higher than both the preceding quarter and the same quarter one year earlier, with operating cash flow being the main driver of the improvement.
Based on the filing discussion, monitor the impact of equity method investments, including Bakkt, and one-time gains such as the PennyMac arbitration award on operating cash flow.