Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from both the prior quarter and the year-ago period, driven primarily by lower operating cash flow. The free cash flow margin weakened significantly compared to both periods.
- Revenue was higher than the previous quarter but lower than a year ago. Operating cash flow fell sharply versus both comparisons, while capital expenditure remained relatively stable, resulting in a notable drop in free cash flow and margin.
- Compared to the prior quarter, revenue increased but operating cash flow and free cash flow were much lower, causing a steep decline in free cash flow margin. Versus the same quarter last year, all metrics except capital expenditure were lower, with margin also weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$244.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$438.0M
Cash generated by operations before capital spending.
CapEx
$194.0M
Capital spending and related asset purchases.
FCF margin
5.6%
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 | $5.1B | $787.0M | $188.0M | $599.0M | 11.7% |
| 2023-09-30 | $5.1B | $927.0M | $160.0M | $767.0M | 14.9% |
| 2023-12-31 | $1.7B | $1.2B | $217.0M | $998.0M | 59.2% |
| 2024-03-31 | $4.3B | $438.0M | $194.0M | $244.0M | 5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | 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 Decline
Operating cash flow was substantially lower than both the prior quarter and the year-ago period, despite higher revenue sequentially. This decline directly reduced free cash flow and margin.
The lower operating cash flow constrained free cash generation and compressed the free cash flow margin.
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 a year ago. Operating cash flow fell sharply versus both comparisons, while capital expenditure remained relatively stable, resulting in a notable drop in free cash flow and margin.
Compared to the prior quarter, revenue increased but operating cash flow and free cash flow were much lower, causing a steep decline in free cash flow margin. Versus the same quarter last year, all metrics except capital expenditure were lower, with margin also weakened.
Monitor the trajectory of operating cash flow, as it is the primary driver of free cash flow changes.