Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved versus a year ago but declined from the preceding quarter.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter last year. Capital expenditure decreased sequentially, contributing to a free cash flow margin that remained above the year-ago level.
- Compared to the preceding quarter, revenue was higher while operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Versus the same quarter one year earlier, all metrics were higher and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$135.0M
Capital spending and related asset purchases.
FCF margin
46.3%
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 | $2.1B | $580.0M | $132.0M | $448.0M | 20.8% |
| 2023-09-30 | $2.3B | $311.0M | $136.0M | $175.0M | 7.6% |
| 2023-12-31 | $2.4B | $1.6B | $261.0M | $1.3B | 55.1% |
| 2024-03-31 | $2.6B | $1.3B | $135.0M | $1.2B | 46.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 347.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth and Cash Generation
Revenue increased from both the prior quarter and the year-ago period, and operating cash flow rose compared to the same quarter last year. The free cash flow margin improved year over year.
Higher revenue and operating cash flow drove a stronger free cash flow margin compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter last year. Capital expenditure decreased sequentially, contributing to a free cash flow margin that remained above the year-ago level.
Compared to the preceding quarter, revenue was higher while operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Versus the same quarter one year earlier, all metrics were higher and the free cash flow margin improved.
Monitor the trend in capital expenditure relative to operating cash flow, as a lower capital outlay supported free cash flow this quarter.