Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased sharply from both the prior quarter and the same quarter last year, driven by a substantial decline in operating cash flow. The free cash flow margin weakened considerably compared to both periods.
- Operating cash flow was lower relative to revenue, resulting in a lower cash conversion rate. Capital expenditure was slightly higher than a year ago but lower than the prior quarter.
- Compared to the immediately preceding quarter, revenue was lower and operating cash flow was significantly lower, leading to a much lower free cash flow. Versus the same quarter one year earlier, revenue was slightly higher but operating cash flow was lower, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$140.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$171.0M
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
4.1%
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 | $3.7B | $446.0M | $37.0M | $409.0M | 11.0% |
| 2023-09-30 | $3.5B | $306.0M | $34.0M | $272.0M | 7.7% |
| 2023-12-31 | $3.6B | $597.0M | $42.0M | $555.0M | 15.3% |
| 2024-03-31 | $3.4B | $171.0M | $31.0M | $140.0M | 4.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 39.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$6.0B | 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 primary factor behind the weakened free cash flow was a notable reduction in operating cash flow, which fell from both the prior quarter and the year-ago quarter. This decline occurred despite revenue being relatively stable compared to last year.
If operating cash flow does not recover, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower relative to revenue, resulting in a lower cash conversion rate. Capital expenditure was slightly higher than a year ago but lower than the prior quarter.
Compared to the immediately preceding quarter, revenue was lower and operating cash flow was significantly lower, leading to a much lower free cash flow. Versus the same quarter one year earlier, revenue was slightly higher but operating cash flow was lower, and free cash flow was lower.
Monitor the trajectory of operating cash flow in upcoming quarters.