Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the same quarter last year, driven by a significant increase in operating cash flow. Compared to the prior quarter, free cash flow was lower, reflecting a decline in both revenue and operating cash flow.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure was slightly lower than both comparison periods. Free cash flow margin improved markedly from the year-ago quarter but weakened from the prior quarter.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was slightly lower, but operating cash flow, free cash flow, and free cash flow margin were all substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$97.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$129.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$147.6M
Cash generated by operations before capital spending.
CapEx
$17.8M
Capital spending and related asset purchases.
FCF margin
20.0%
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 |
|---|---|---|---|---|---|
| 2023-07-02 | $709.1M | -$135.3M | $13.9M | -$149.3M | -21.1% |
| 2023-10-01 | $670.7M | -$33.5M | $22.4M | -$55.8M | -8.3% |
| 2023-12-31 | $695.9M | $196.6M | $24.1M | $172.5M | 24.8% |
| 2024-03-31 | $649.9M | $147.6M | $17.8M | $129.7M | 20.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 498.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | 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 Improvement
Operating cash flow was substantially higher than the same quarter last year, driving a significant improvement in free cash flow and free cash flow margin. This occurred even though revenue was slightly lower year over year.
The higher operating cash flow was the strongest observable driver of the quarter's free cash flow performance.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure was slightly lower than both comparison periods. Free cash flow margin improved markedly from the year-ago quarter but weakened from the prior quarter.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was slightly lower, but operating cash flow, free cash flow, and free cash flow margin were all substantially higher.
Monitor the sustainability of the operating cash flow level relative to revenue, as it was significantly higher than the year-ago quarter despite lower revenue.