Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened year-over-year. The sequential improvement was driven by higher operating cash flow and lower capital expenditure, while the year-over-year decline reflected a larger increase in capital spending relative to operating cash flow growth.
- Revenue was stable sequentially and higher year-over-year. Operating cash flow increased sequentially but decreased year-over-year, while capital expenditure was lower sequentially but higher year-over-year. As a result, free cash flow margin improved sequentially but weakened year-over-year.
- Compared to the prior quarter, free cash flow and margin improved as operating cash flow rose and capital expenditure fell. Compared to the same quarter last year, free cash flow and margin weakened as operating cash flow declined and capital expenditure increased.
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
$670.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$779.0M
Cash generated by operations before capital spending.
CapEx
$109.0M
Capital spending and related asset purchases.
FCF margin
11.2%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $6.1B | $651.0M | $99.0M | $552.0M | 9.1% |
| 2023-09-30 | $5.9B | $881.0M | $124.0M | $757.0M | 12.8% |
| 2023-12-31 | $6.1B | $751.0M | $134.0M | $617.0M | 10.1% |
| 2024-03-31 | $6.0B | $779.0M | $109.0M | $670.0M | 11.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $373.0M | 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 decreased year-over-year even as revenue increased, indicating a weaker cash conversion from revenue. This was the primary factor behind the year-over-year decline in free cash flow.
If operating cash flow continues to lag revenue growth, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year-over-year. Operating cash flow increased sequentially but decreased year-over-year, while capital expenditure was lower sequentially but higher year-over-year. As a result, free cash flow margin improved sequentially but weakened year-over-year.
Compared to the prior quarter, free cash flow and margin improved as operating cash flow rose and capital expenditure fell. Compared to the same quarter last year, free cash flow and margin weakened as operating cash flow declined and capital expenditure increased.
Monitor the trend in operating cash flow, which declined year-over-year despite higher revenue.