Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus the prior quarter, driven by higher operating cash flow despite slightly lower revenue. Compared to the same quarter last year, free cash flow was lower as operating cash flow declined.
- Revenue was stable compared to the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but decreased from the year-ago quarter, leading to a free cash flow margin that improved sequentially but weakened year over year.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$838.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$910.0M
Cash generated by operations before capital spending.
CapEx
$71.8M
Capital spending and related asset purchases.
FCF margin
35.5%
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 | $2.4B | $959.1M | $78.7M | $880.4M | 37.4% |
| 2023-09-30 | $2.4B | $883.7M | $68.0M | $815.7M | 34.0% |
| 2023-12-31 | $2.5B | $622.2M | $76.8M | $545.4M | 21.9% |
| 2024-03-31 | $2.4B | $910.0M | $71.8M | $838.2M | 35.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.0B | 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 Recovery
Operating cash flow increased significantly from the prior quarter, driving a higher free cash flow margin. This improvement occurred even as revenue was slightly lower.
The sequential increase in operating cash flow was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and the year-ago quarter. Operating cash flow increased from the prior quarter but decreased from the year-ago quarter, leading to a free cash flow margin that improved sequentially but weakened year over year.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were lower, as operating cash flow was lower.
Monitor the trend in operating cash flow, as it was the primary factor behind both the sequential improvement and the year-over-year decline.