Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened from the prior quarter but improved from the same quarter last year. Operating cash flow was lower sequentially but higher year-over-year, while capital expenditure decreased from the prior quarter and increased from a year ago.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow as a proportion of revenue declined sequentially but improved year-over-year, resulting in a free cash flow margin that was lower than the prior quarter and higher than the same quarter last year.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Compared to the same quarter last year, revenue was slightly lower, operating cash flow and free cash flow were higher, and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$217.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$294.5M
Cash generated by operations before capital spending.
CapEx
$77.3M
Capital spending and related asset purchases.
FCF margin
33.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | -$564.9M | $486.9M | $84.0M | $402.9M | -71.3% |
| 2023-09-30 | $45.1M | $313.7M | $115.4M | $198.3M | 439.5% |
| 2023-12-31 | $675.0M | $432.6M | $99.8M | $332.8M | 49.3% |
| 2024-03-31 | $657.9M | $294.5M | $77.3M | $217.2M | 33.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 140.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.1B | 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 improvement
Free cash flow and margin were higher than the same quarter last year, driven by higher operating cash flow despite a modest increase in capital expenditure.
This improvement contributed to a stronger cash conversion compared to the year-ago period.
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 as a proportion of revenue declined sequentially but improved year-over-year, resulting in a free cash flow margin that was lower than the prior quarter and higher than the same quarter last year.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Compared to the same quarter last year, revenue was slightly lower, operating cash flow and free cash flow were higher, and margin improved.
Monitor the trend in capital expenditure, which was lower than the prior quarter but higher than the year-ago quarter.