Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially and year-over-year, driven by higher operating cash flow relative to revenue. Revenue grew moderately compared to both prior periods, while capital spending remained stable.
- Operating cash flow as a percentage of revenue was higher in the current quarter compared to both the prior quarter and the same quarter last year. With capital expenditure broadly stable, the conversion to free cash flow strengthened accordingly.
- Sequentially, free cash flow and its margin increased sharply, outpacing revenue growth. Year-over-year, free cash flow also rose, with the margin improving from the prior year's level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$697.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$775.0M
Cash generated by operations before capital spending.
CapEx
$78.0M
Capital spending and related asset purchases.
FCF margin
39.0%
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 | $1.5B | $604.0M | $54.0M | $550.0M | 36.8% |
| 2023-09-30 | $1.5B | $462.0M | $71.0M | $391.0M | 26.6% |
| 2023-12-31 | $1.5B | $477.0M | $73.0M | $404.0M | 27.3% |
| 2024-03-31 | $1.8B | $775.0M | $78.0M | $697.0M | 39.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, growing faster than revenue. This drove the improvement in free cash flow and margin.
The higher operating cash flow more than offset stable capital expenditure, resulting in a stronger free cash flow conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher in the current quarter compared to both the prior quarter and the same quarter last year. With capital expenditure broadly stable, the conversion to free cash flow strengthened accordingly.
Sequentially, free cash flow and its margin increased sharply, outpacing revenue growth. Year-over-year, free cash flow also rose, with the margin improving from the prior year's level.
Monitor whether operating cash flow can sustain its elevated proportion of revenue in subsequent quarters.