Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter one year earlier, driven by higher operating cash flow and lower capital expenditure. Relative to the immediately preceding quarter, free cash flow decreased, reflecting a sequential decline in operating cash flow.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased versus the year-ago quarter but decreased sequentially. Free cash flow margin strengthened compared to the year-ago quarter but weakened from the preceding quarter.
- Compared to the immediately preceding quarter, free cash flow was lower, primarily due to a reduction in operating cash flow. Compared to the same quarter one year earlier, free cash flow was higher, supported by stronger operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$796.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$168.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$198.6M
Cash generated by operations before capital spending.
CapEx
$30.3M
Capital spending and related asset purchases.
FCF margin
17.5%
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 | $943.6M | $200.3M | $27.5M | $172.8M | 18.3% |
| 2023-09-30 | $915.5M | $272.4M | $34.1M | $238.3M | 26.0% |
| 2023-12-31 | $901.6M | $249.9M | $32.6M | $217.3M | 24.1% |
| 2024-03-31 | $964.1M | $198.6M | $30.3M | $168.3M | 17.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$298.3M | 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 improvement year-over-year
Operating cash flow was higher than the same quarter one year earlier. This was the strongest observable driver behind the year-over-year free cash flow improvement.
Higher operating cash flow contributed to a higher free cash flow compared to the year-ago quarter.
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. Operating cash flow increased versus the year-ago quarter but decreased sequentially. Free cash flow margin strengthened compared to the year-ago quarter but weakened from the preceding quarter.
Compared to the immediately preceding quarter, free cash flow was lower, primarily due to a reduction in operating cash flow. Compared to the same quarter one year earlier, free cash flow was higher, supported by stronger operating cash flow and lower capital expenditure.
Monitor the trend in operating cash flow given its sequential decline from the prior quarter.