Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than the prior quarter but higher than the same quarter last year, with the margin weakening sequentially and improving year over year. Revenue was stable compared to a year ago and slightly higher than the previous quarter.
- Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure decreased compared to both periods. The resulting free cash flow margin weakened from the prior quarter but improved from the same quarter last year.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, with capital expenditure also lower. Compared to the same quarter last year, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$861.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$183.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$260.4M
Cash generated by operations before capital spending.
CapEx
$76.7M
Capital spending and related asset purchases.
FCF margin
9.3%
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 | $2.0B | $359.9M | $126.4M | $233.5M | 12.0% |
| 2023-09-30 | $1.9B | $339.5M | $89.8M | $249.7M | 12.9% |
| 2023-12-31 | $1.9B | $335.3M | $141.1M | $194.2M | 10.0% |
| 2024-03-31 | $2.0B | $260.4M | $76.7M | $183.7M | 9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.2B | 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
Operating cash flow was lower than both the immediately preceding quarter and the same quarter one year earlier, despite revenue being stable or higher. This was the strongest observable driver of the change in free cash flow.
The lower operating cash flow reduced free cash flow relative to the prior quarter, partially offset by lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure decreased compared to both periods. The resulting free cash flow margin weakened from the prior quarter but improved from the same quarter last year.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, with capital expenditure also lower. Compared to the same quarter last year, revenue was stable, operating cash flow was lower, capital expenditure was lower, and free cash flow was higher.
Monitor the trend in operating cash flow, which declined from both the prior quarter and the year-ago quarter.