Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a strong increase in operating cash flow, but remained below the level from a year earlier. Revenue was lower than both the prior quarter and the same quarter last year, while capital expenditure rose.
- Operating cash flow converted into free cash flow at a high rate after accounting for a modest increase in capital expenditure, yielding a free cash flow margin that was materially higher than the prior quarter and slightly lower than a year ago.
- Compared with the immediately preceding quarter, revenue was lower but operating cash flow was much higher, leading to a significant improvement in free cash flow and margin. Versus the same quarter one year earlier, revenue and operating cash flow were both lower, resulting in lower free cash flow and a slightly weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$82000
Trailing twelve-month free cash flow.
Quarter free cash flow
$27.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$28.6M
Cash generated by operations before capital spending.
CapEx
$1.5M
Capital spending and related asset purchases.
FCF margin
23.5%
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 | $120.4M | -$18.5M | $639000 | -$19.1M | -15.9% |
| 2023-09-30 | $129.5M | -$7.4M | $1.5M | -$8.8M | -6.8% |
| 2023-12-31 | $124.5M | $1.2M | $347000 | $837000 | 0.7% |
| 2024-03-31 | $115.2M | $28.6M | $1.5M | $27.0M | 23.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -50.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 Recovery
Operating cash flow rose sharply from the prior quarter, more than offsetting the increase in capital expenditure and driving a large improvement in free cash flow. Although the level was lower than a year ago, the sequential change was the strongest observable factor.
The higher operating cash flow was the primary reason free cash flow and free cash flow margin improved so much from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow at a high rate after accounting for a modest increase in capital expenditure, yielding a free cash flow margin that was materially higher than the prior quarter and slightly lower than a year ago.
Compared with the immediately preceding quarter, revenue was lower but operating cash flow was much higher, leading to a significant improvement in free cash flow and margin. Versus the same quarter one year earlier, revenue and operating cash flow were both lower, resulting in lower free cash flow and a slightly weaker margin.
Monitor the trend in capital expenditure, which increased from both the prior quarter and the year-ago period.