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 same quarter last year but improved from the prior quarter. Operating cash flow turned strongly positive compared to a year ago, driving a positive free cash flow margin.
- Operating cash flow was a substantial portion of revenue, and capital expenditure was lower than both the prior quarter and the year-ago quarter, resulting in a free cash flow margin that was positive and higher than both comparison periods.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure decreased. Compared to the same quarter last year, revenue was slightly lower, but operating cash flow and free cash flow improved markedly from a negative position.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$198.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$267.0M
Cash generated by operations before capital spending.
CapEx
$69.0M
Capital spending and related asset purchases.
FCF margin
2.7%
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 | $6.2B | $570.0M | $182.0M | $388.0M | 6.2% |
| 2023-09-30 | $7.9B | $566.0M | $169.0M | $397.0M | 5.1% |
| 2023-12-31 | $6.7B | $241.0M | $105.0M | $136.0M | 2.0% |
| 2024-03-31 | $7.4B | $267.0M | $69.0M | $198.0M | 2.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 38.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.6B | 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 turned from a large negative amount a year ago to a positive figure this quarter, while capital expenditure was reduced. This combination was the strongest observable driver of the improvement in free cash flow.
The shift in operating cash flow was the primary factor behind the positive free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was a substantial portion of revenue, and capital expenditure was lower than both the prior quarter and the year-ago quarter, resulting in a free cash flow margin that was positive and higher than both comparison periods.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, while capital expenditure decreased. Compared to the same quarter last year, revenue was slightly lower, but operating cash flow and free cash flow improved markedly from a negative position.
Monitor whether operating cash flow can sustain its positive level relative to revenue in upcoming quarters.