Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion for the quarter improved sequentially, with free cash flow and margin rising from the prior quarter. However, compared to the same quarter a year earlier, free cash flow and margin declined, reflecting a mixed performance.
- Revenue increased while operating cash flow grew, capital expenditure was slightly lower, and free cash flow rose, resulting in a higher free cash flow margin compared to the immediately preceding quarter.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$491.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$530.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
29.3%
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 | $1.4B | $414.0M | $39.0M | $375.0M | 26.2% |
| 2023-09-30 | $1.5B | $300.0M | $37.0M | $263.0M | 18.1% |
| 2023-12-31 | $1.6B | $417.0M | $42.0M | $375.0M | 22.8% |
| 2024-03-31 | $1.7B | $530.0M | $39.0M | $491.0M | 29.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 209.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Cash Flow Improvement
Operating cash flow and free cash flow both increased from the previous quarter, while capital expenditure remained relatively stable. This drove a higher free cash flow margin.
The improvement reversed the weaker cash conversion seen in the prior quarter relative to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew, capital expenditure was slightly lower, and free cash flow rose, resulting in a higher free cash flow margin compared to the immediately preceding quarter.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and margin all improved. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were lower.
Monitor the trend in free cash flow margin relative to the year-ago level, as it declined despite higher revenue.