Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the year-ago quarter but lower than the immediately preceding quarter. Free cash flow and free cash flow margin weakened substantially compared to both prior periods, driven by a lower operating cash flow relative to revenue.
- Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter, resulting in a free cash flow margin that was also lower than both comparables. Capital expenditure was relatively stable across all three periods.
- Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while free cash flow and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all substantially lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$215.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$239.8M
Cash generated by operations before capital spending.
CapEx
$24.1M
Capital spending and related asset purchases.
FCF margin
5.5%
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 | $4.2B | $739.2M | $21.3M | $717.9M | 17.1% |
| 2023-09-30 | $4.0B | $457.8M | $22.5M | $435.3M | 10.9% |
| 2023-12-31 | $4.3B | $288.4M | $24.6M | $263.8M | 6.1% |
| 2024-03-31 | $3.9B | $239.8M | $24.1M | $215.7M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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 conversion
Operating cash flow relative to revenue was lower than both the prior quarter and the year-ago quarter, causing free cash flow to decline despite higher revenue than a year ago.
The weakened cash conversion reduced free cash flow and free cash flow margin compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the prior quarter and the year-ago quarter, resulting in a free cash flow margin that was also lower than both comparables. Capital expenditure was relatively stable across all three periods.
Compared to the immediately preceding quarter, revenue and operating cash flow were lower, while free cash flow and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were all substantially lower.
Monitor the ratio of operating cash flow to revenue, as its decline was the primary observable factor in the weakened free cash flow margin.