Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a year ago, driven by a significant improvement in operating cash flow. However, free cash flow margin weakened sharply from the prior quarter as revenue declined and operating cash flow contracted.
- Revenue was lower than the prior quarter, while operating cash flow decreased more than proportionally, resulting in a lower free cash flow margin. Capital expenditure was also lower, but the drop in operating cash flow was the primary factor behind the weaker cash conversion.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year ago, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$154.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$238.0M
Cash generated by operations before capital spending.
CapEx
$83.1M
Capital spending and related asset purchases.
FCF margin
3.1%
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 | $5.0B | $127.4M | $105.3M | $22.1M | 0.4% |
| 2023-09-30 | $5.6B | $406.6M | $139.8M | $266.8M | 4.7% |
| 2023-12-31 | $5.8B | $1.0B | $109.4M | $894.1M | 15.5% |
| 2024-03-31 | $5.0B | $238.0M | $83.1M | $154.8M | 3.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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 Recovery
Operating cash flow was substantially higher than the same quarter last year, turning free cash flow positive. This improvement is the strongest observable driver of the quarter's cash generation.
The increase in operating cash flow was the key factor enabling positive free cash flow, despite a decline in revenue from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter, while operating cash flow decreased more than proportionally, resulting in a lower free cash flow margin. Capital expenditure was also lower, but the drop in operating cash flow was the primary factor behind the weaker cash conversion.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all decreased. Compared to the same quarter one year ago, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved from negative to positive.
Monitor whether operating cash flow can sustain its improvement relative to the year-ago level, as it is the primary driver of free cash flow generation.