Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was unchanged from the prior quarter but higher than the year-ago quarter. Free cash flow margin weakened compared to both the prior quarter and the year-ago quarter, primarily due to lower operating cash flow.
- Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure decreased versus the prior quarter but increased versus the year-ago quarter. Free cash flow was lower than the year-ago quarter and slightly lower than the prior quarter, resulting in a free cash flow margin that was stable relative to the prior quarter but lower than the year-ago quarter.
- Compared to the prior quarter, revenue was flat, operating cash flow was lower, capital expenditure was lower, and free cash flow was slightly lower. Compared to the year-ago quarter, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$377.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$549.3M
Cash generated by operations before capital spending.
CapEx
$172.1M
Capital spending and related asset purchases.
FCF margin
8.6%
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 | $3.9B | $576.7M | $253.5M | $323.2M | 8.2% |
| 2023-09-30 | $4.0B | $694.1M | $209.8M | $484.3M | 12.2% |
| 2023-12-31 | $4.4B | $715.9M | $328.8M | $387.2M | 8.8% |
| 2024-03-31 | $4.4B | $549.3M | $172.1M | $377.2M | 8.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 173.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.5B | 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 decline
The strongest observable driver was the decrease in operating cash flow from both the prior quarter and the year-ago quarter. This decline directly reduced free cash flow despite lower capital expenditure relative to the prior quarter.
The lower operating cash flow was the primary factor weakening free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure decreased versus the prior quarter but increased versus the year-ago quarter. Free cash flow was lower than the year-ago quarter and slightly lower than the prior quarter, resulting in a free cash flow margin that was stable relative to the prior quarter but lower than the year-ago quarter.
Compared to the prior quarter, revenue was flat, operating cash flow was lower, capital expenditure was lower, and free cash flow was slightly lower. Compared to the year-ago quarter, revenue was higher, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower.
Monitor the trend in operating cash flow given its decline relative to both the prior quarter and the year-ago quarter.