Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a significant improvement in operating cash flow. However, the free cash flow margin was lower than the same quarter one year earlier.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow was positive, a reversal from the prior quarter's negative figure, though lower than the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but lower than a year ago. As a result, free cash flow was positive with a margin above eight percent, compared to a negative margin in the prior quarter and a higher positive margin a year ago.
- Compared to the prior quarter, free cash flow improved from negative to positive, while compared to the same quarter one year earlier, free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$924.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$474.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$608.4M
Cash generated by operations before capital spending.
CapEx
$133.7M
Capital spending and related asset purchases.
FCF margin
8.2%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $3.1B | $1.2B | $116.9M | $1.0B | 33.3% |
| 2023-06-30 | $5.6B | $491.0M | $85.6M | $405.4M | 7.2% |
| 2023-09-30 | $8.2B | -$892.2M | $102.4M | -$994.6M | -12.2% |
| 2023-12-31 | $5.8B | $608.4M | $133.7M | $474.6M | 8.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -203.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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 Recovery
Operating cash flow turned positive this quarter after a negative prior quarter, despite lower revenue. This shift was the primary factor behind the positive free cash flow.
The recovery in operating cash flow enabled the company to generate free cash flow, reversing the prior quarter's deficit.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow was positive, a reversal from the prior quarter's negative figure, though lower than the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but lower than a year ago. As a result, free cash flow was positive with a margin above eight percent, compared to a negative margin in the prior quarter and a higher positive margin a year ago.
Compared to the prior quarter, free cash flow improved from negative to positive, while compared to the same quarter one year earlier, free cash flow and margin were lower.
Monitor the proportion of cash equivalents attributable to client ticket proceeds, as noted in the filing.