Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and operating cash flow were lower than both the prior quarter and the same quarter last year, while revenue was stable. The free cash flow margin weakened significantly compared to both periods.
- Revenue was stable, but operating cash flow was lower, leading to a lower free cash flow margin. Capital expenditure was higher than both comparison periods, further reducing free cash flow.
- Compared to the prior quarter, revenue was slightly lower, while operating cash flow and free cash flow were substantially lower, resulting in a weakened margin. Versus the same quarter last year, revenue was slightly higher, but operating cash flow and free cash flow were lower, with a weakened margin.
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
$137.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$146.5M
Cash generated by operations before capital spending.
CapEx
$9.0M
Capital spending and related asset purchases.
FCF margin
5.9%
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 | $2.3B | $28.7M | $8.7M | $19.9M | 0.9% |
| 2023-09-30 | $2.6B | $658.1M | $7.1M | $651.0M | 25.3% |
| 2023-12-31 | $2.4B | $495.7M | $6.3M | $489.4M | 20.1% |
| 2024-03-31 | $2.3B | $146.5M | $9.0M | $137.5M | 5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 34.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Operating Cash Flow Decline
The most observable driver of the lower free cash flow was the decline in operating cash flow, which was lower than both the prior quarter and the same quarter last year, despite revenue being relatively stable.
The lower operating cash flow directly reduced free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow was lower, leading to a lower free cash flow margin. Capital expenditure was higher than both comparison periods, further reducing free cash flow.
Compared to the prior quarter, revenue was slightly lower, while operating cash flow and free cash flow were substantially lower, resulting in a weakened margin. Versus the same quarter last year, revenue was slightly higher, but operating cash flow and free cash flow were lower, with a weakened margin.
Monitor the level of capital expenditure, which was higher in the current quarter compared to both the prior quarter and the same quarter last year.