Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply from the prior quarter as revenue and operating cash flow fell. Compared to the same quarter a year ago, free cash flow also decreased but the margin improved, reflecting lower capital expenditure.
- Revenue and operating cash flow both decreased, while capital expenditure also declined. The resulting free cash flow margin narrowed from the prior quarter but widened from the year-ago quarter, indicating a mixed cash conversion pattern.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all were lower, causing a weakened free cash flow margin. Relative to the same quarter one year earlier, revenue and free cash flow were also lower, but capital expenditure was significantly lower, resulting in an improved margin.
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
$389.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$430.0M
Cash generated by operations before capital spending.
CapEx
$40.1M
Capital spending and related asset purchases.
FCF margin
29.4%
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 | $2.3B | $993.2M | $111.1M | $882.1M | 38.5% |
| 2023-09-30 | $2.3B | $616.2M | $74.4M | $541.8M | 24.0% |
| 2023-12-31 | $1.8B | $853.3M | $59.5M | $793.8M | 45.0% |
| 2024-03-31 | $1.3B | $430.0M | $40.1M | $389.9M | 29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 252.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure reduction
Capital expenditure was substantially lower than both the prior and year-ago quarters, partially offsetting the decline in operating cash flow. This helped the free cash flow margin to improve year-over-year despite lower revenue.
Sustained lower capital spending could support free cash flow even if revenue remains under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both decreased, while capital expenditure also declined. The resulting free cash flow margin narrowed from the prior quarter but widened from the year-ago quarter, indicating a mixed cash conversion pattern.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all were lower, causing a weakened free cash flow margin. Relative to the same quarter one year earlier, revenue and free cash flow were also lower, but capital expenditure was significantly lower, resulting in an improved margin.
Monitor the trend in capital expenditure, as its decline was a key factor in supporting the free cash flow margin relative to last year.