Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow decreased sequentially, weakening free cash flow margin, while the margin was stable year over year.
- The company converted a lower share of revenue into free cash flow compared to the prior quarter, as operating cash flow declined more sharply than revenue. Relative to the year-ago quarter, the conversion rate was similar, with both operating cash flow and free cash flow higher.
- Sequentially, free cash flow margin weakened, driven by a lower operating cash flow despite a modest reduction in revenue. Year over year, the margin held steady, as the increase in operating cash flow outpaced the rise in revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$295.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$300.1M
Cash generated by operations before capital spending.
CapEx
$4.3M
Capital spending and related asset purchases.
FCF margin
43.5%
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 | $621.2M | $291.8M | $9.2M | $282.7M | 45.5% |
| 2023-09-30 | $625.4M | $291.1M | $3.6M | $287.6M | 46.0% |
| 2023-12-31 | $690.1M | $389.0M | $3.8M | $385.1M | 55.8% |
| 2024-03-31 | $680.0M | $300.1M | $4.3M | $295.9M | 43.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.0B | 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 fell from the prior quarter, while revenue decreased only slightly. This was the primary factor behind the lower free cash flow.
The decline in operating cash flow reduced free cash flow generation and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a lower share of revenue into free cash flow compared to the prior quarter, as operating cash flow declined more sharply than revenue. Relative to the year-ago quarter, the conversion rate was similar, with both operating cash flow and free cash flow higher.
Sequentially, free cash flow margin weakened, driven by a lower operating cash flow despite a modest reduction in revenue. Year over year, the margin held steady, as the increase in operating cash flow outpaced the rise in revenue.
Monitor operating cash flow trends, as they are a key liquidity source per the company's filing.