Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Despite a higher operating cash flow than the previous quarter, free cash flow margin improved sequentially but remained below the level of one year ago.
- Operating cash flow was higher than the prior quarter but lower than the same quarter last year, while capital expenditure was slightly lower than the prior quarter and higher than a year ago. The resulting free cash flow and margin improved from the previous quarter but weakened compared to the year-ago period.
- Compared to the immediately preceding quarter, free cash flow and margin improved, driven by a higher operating cash flow and a modestly lower capital expenditure. However, relative to the same quarter one year earlier, free cash flow and margin declined, as operating cash flow decreased and capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$455.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$704.2M
Cash generated by operations before capital spending.
CapEx
$249.2M
Capital spending and related asset purchases.
FCF margin
11.4%
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 | $4.1B | $937.6M | $237.7M | $699.9M | 17.2% |
| 2023-09-30 | $4.2B | $866.3M | $293.0M | $573.3M | 13.6% |
| 2023-12-31 | $3.8B | $516.4M | $252.3M | $264.1M | 6.9% |
| 2024-03-31 | $4.0B | $704.2M | $249.2M | $455.0M | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.3% | 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
Operating cash flow increased from the previous quarter but decreased from the same quarter last year, which directly influenced free cash flow.
The sequential improvement in free cash flow was supported by higher operating cash flow, but the year-over-year comparison reflects a decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter but lower than the same quarter last year, while capital expenditure was slightly lower than the prior quarter and higher than a year ago. The resulting free cash flow and margin improved from the previous quarter but weakened compared to the year-ago period.
Compared to the immediately preceding quarter, free cash flow and margin improved, driven by a higher operating cash flow and a modestly lower capital expenditure. However, relative to the same quarter one year earlier, free cash flow and margin declined, as operating cash flow decreased and capital expenditure increased.
Monitor the year-over-year trend in operating cash flow relative to revenue, as it declined despite higher revenue.