Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter, while operating cash flow and free cash flow improved significantly. The free cash flow margin strengthened versus both the preceding quarter and the same quarter one year earlier.
- Operating cash flow was higher than the prior quarter and the year-ago quarter, while capital expenditure was lower in both comparisons. This combination drove a higher free cash flow and an improved free cash flow margin relative to both periods.
- Compared to the immediately preceding quarter, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$380.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$402.0M
Cash generated by operations before capital spending.
CapEx
$21.2M
Capital spending and related asset purchases.
FCF margin
31.8%
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 | $1.1B | $237.4M | $34.4M | $203.0M | 18.1% |
| 2023-09-30 | $1.1B | $286.3M | $30.0M | $256.2M | 23.2% |
| 2023-12-31 | $1.2B | $272.8M | $23.4M | $249.5M | 21.5% |
| 2024-03-31 | $1.2B | $402.0M | $21.2M | $380.8M | 31.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$759.1M | 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 sequentially and year-over-year, while revenue was stable sequentially and higher year-over-year. This indicates a stronger conversion of revenue into cash from operations during the quarter.
The higher operating cash flow was the primary factor behind the improved free cash flow and margin in the 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 the prior quarter and the year-ago quarter, while capital expenditure was lower in both comparisons. This combination drove a higher free cash flow and an improved free cash flow margin relative to both periods.
Compared to the immediately preceding quarter, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher. Versus the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher.
Monitor whether operating cash flow can sustain its current level relative to revenue, as it was the strongest observable driver of the free cash flow improvement.