Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved compared to the year-ago quarter but weakened sequentially.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin reflected the proportion of revenue converted into free cash flow after capital spending.
- Compared to the prior quarter, revenue was slightly lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$523.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$120.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$127.4M
Cash generated by operations before capital spending.
CapEx
$7.2M
Capital spending and related asset purchases.
FCF margin
16.1%
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 | $820.8M | $147.4M | $6.8M | $140.6M | 17.1% |
| 2023-09-30 | $840.4M | $127.4M | $6.9M | $120.5M | 14.3% |
| 2023-12-31 | $754.1M | $152.8M | $11.2M | $141.6M | 18.8% |
| 2024-03-31 | $748.3M | $127.4M | $7.2M | $120.3M | 16.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 127.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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.
Year-over-Year Free Cash Flow Growth
Free cash flow and free cash flow margin were higher compared to the same quarter one year earlier, driven by a larger increase in operating cash flow relative to the increase in capital expenditure.
This resulted in a stronger cash conversion rate from revenue compared to the prior year period.
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 reflected the proportion of revenue converted into free cash flow after capital spending.
Compared to the prior quarter, revenue was slightly lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite stable revenue levels.