Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter compared to a negative figure one year earlier, though it decreased sharply from the prior quarter. The improvement over last year was driven by higher operating cash flow, while the sequential decline reflected lower revenue and operating cash flow.
- Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow improved significantly year-over-year but fell sequentially, leading to a free cash flow margin that was positive versus a negative margin a year ago but much lower than the previous quarter.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and margin all improved, with free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$904.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$81.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$121.0M
Cash generated by operations before capital spending.
CapEx
$39.9M
Capital spending and related asset purchases.
FCF margin
5.2%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $1.5B | $270.7M | $39.6M | $231.1M | 15.4% |
| 2023-09-30 | $1.6B | $72.9M | $42.8M | $30.1M | 1.8% |
| 2023-12-30 | $1.9B | $605.1M | $42.5M | $562.6M | 29.1% |
| 2024-03-30 | $1.6B | $121.0M | $39.9M | $81.1M | 5.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $521.7M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow recovery
Operating cash flow was substantially higher than the same quarter last year, which was the primary factor behind the swing from negative to positive free cash flow. Capital expenditure was also lower year-over-year, further supporting free cash flow.
This recovery enabled the company to generate positive free cash flow this quarter compared to a deficit one year earlier.
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 but higher than the same quarter last year. Operating cash flow improved significantly year-over-year but fell sequentially, leading to a free cash flow margin that was positive versus a negative margin a year ago but much lower than the previous quarter.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin all decreased. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and margin all improved, with free cash flow turning from negative to positive.
Monitor whether operating cash flow can sustain its year-over-year improvement given the sequential decline from the prior quarter.