Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin were lower than both the prior quarter and the same quarter last year, driven by a decline in operating cash flow. Revenue was stable compared to a year ago but slightly lower than the previous quarter.
- Operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter. Revenue was unchanged year-over-year, while operating cash flow and free cash flow both declined.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter last year, revenue was stable, but operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$610.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$773.1M
Cash generated by operations before capital spending.
CapEx
$163.0M
Capital spending and related asset purchases.
FCF margin
42.3%
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 | $1.4B | $1.1B | $221.2M | $908.3M | 66.3% |
| 2023-09-30 | $1.4B | $935.9M | $227.7M | $708.2M | 50.2% |
| 2023-12-31 | $1.5B | $1.0B | $178.3M | $858.5M | 56.2% |
| 2024-03-31 | $1.4B | $773.1M | $163.0M | $610.1M | 42.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 72.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.3B | 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 Decline
Operating cash flow decreased compared to both the prior quarter and the same quarter last year, while capital expenditure remained relatively stable. This decline was the strongest observable driver of the lower free cash flow.
The reduction in operating cash flow directly weakened free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than both the prior quarter and the year-ago quarter. Revenue was unchanged year-over-year, while operating cash flow and free cash flow both declined.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter last year, revenue was stable, but operating cash flow, free cash flow, and margin were lower.
Monitor the trend in operating cash flow, as it was the primary factor behind the decline in free cash flow this quarter.