Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly compared to both the prior quarter and the same quarter last year, driven by a sharp increase in operating cash flow despite lower revenue. Capital expenditure rose from the prior quarter but remained below the year-ago level.
- Operating cash flow increased relative to both the prior quarter and the year-ago quarter, while revenue declined, indicating stronger cash conversion efficiency. Free cash flow margin expanded as operating cash flow growth outpaced capital expenditure increases.
- Compared to the prior quarter, free cash flow improved on higher operating cash flow and a smaller sequential increase in capital expenditure. Versus the same quarter last year, free cash flow rose despite lower revenue, supported by higher operating cash flow and reduced capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$447.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$539.0M
Cash generated by operations before capital spending.
CapEx
$92.0M
Capital spending and related asset purchases.
FCF margin
22.4%
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 | $566.0M | $422.0M | $3.0M | $419.0M | 74.0% |
| 2023-09-30 | $2.0B | -$55.0M | $124.0M | -$179.0M | -8.8% |
| 2023-12-31 | $2.1B | $360.0M | $30.0M | $330.0M | 15.5% |
| 2024-03-31 | $2.0B | $539.0M | $92.0M | $447.0M | 22.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1490.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$973.0M | 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 Strength
Operating cash flow rose materially from both the prior quarter and the year-ago quarter, despite lower revenue. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow directly boosted free cash flow and margin, offsetting the negative effect of lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to both the prior quarter and the year-ago quarter, while revenue declined, indicating stronger cash conversion efficiency. Free cash flow margin expanded as operating cash flow growth outpaced capital expenditure increases.
Compared to the prior quarter, free cash flow improved on higher operating cash flow and a smaller sequential increase in capital expenditure. Versus the same quarter last year, free cash flow rose despite lower revenue, supported by higher operating cash flow and reduced capital expenditure.
Monitor the trajectory of capital expenditure, which increased from the prior quarter and may pressure future free cash flow if it rises further.