Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow turned strongly positive from a negative position in the prior quarter, while the free cash flow margin widened versus the year-ago quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the year-ago quarter but significantly improved from the prior quarter.
- Compared to the prior quarter, revenue and operating cash flow increased, capital expenditure dropped sharply, and free cash flow shifted from negative to positive. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was slightly lower, and free cash flow was stable while the margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$608.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$242.0M
Capital spending and related asset purchases.
FCF margin
29.1%
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 | $3.5B | $1.4B | $796.0M | $596.0M | 16.9% |
| 2023-09-30 | $4.2B | $659.0M | $281.0M | $378.0M | 9.1% |
| 2023-12-31 | $3.3B | $1.1B | $2.6B | -$1.5B | -43.6% |
| 2024-03-31 | $3.7B | $1.3B | $242.0M | $1.1B | 29.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 301.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, supporting the generation of positive free cash flow despite a moderate capital expenditure level.
The improvement in operating cash flow was the strongest observable driver of the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was lower than the year-ago quarter but significantly improved from the prior quarter.
Compared to the prior quarter, revenue and operating cash flow increased, capital expenditure dropped sharply, and free cash flow shifted from negative to positive. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was slightly lower, and free cash flow was stable while the margin weakened.
Monitor the trend in capital expenditure, which decreased substantially from the prior quarter and was slightly lower than the year-ago quarter.