Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year, driven by higher operating cash flow. The margin also strengthened versus the prior year, though it was lower than the immediately preceding quarter.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than a year earlier but lower than the previous quarter, while capital expenditure decreased compared to both periods. Free cash flow and free cash flow margin followed the same pattern as operating cash flow.
- Compared to the prior quarter, free cash flow and margin were lower despite higher revenue, as operating cash flow declined. Versus the same quarter last year, free cash flow and margin were higher, supported by stronger operating cash flow and slightly lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$924.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$948.0M
Cash generated by operations before capital spending.
CapEx
$24.0M
Capital spending and related asset purchases.
FCF margin
26.5%
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 | $3.1B | $769.0M | $31.0M | $738.0M | 23.8% |
| 2023-09-30 | $3.1B | $1.0B | $36.0M | $977.0M | 31.7% |
| 2023-12-31 | $3.2B | $1.3B | $48.0M | $1.3B | 40.8% |
| 2024-03-31 | $3.5B | $948.0M | $24.0M | $924.0M | 26.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.2B | 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 Growth
Operating cash flow was higher than the same quarter last year, which was the primary factor behind the year-over-year improvement in free cash flow and margin.
The increase in operating cash flow drove the year-over-year improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow was higher than a year earlier but lower than the previous quarter, while capital expenditure decreased compared to both periods. Free cash flow and free cash flow margin followed the same pattern as operating cash flow.
Compared to the prior quarter, free cash flow and margin were lower despite higher revenue, as operating cash flow declined. Versus the same quarter last year, free cash flow and margin were higher, supported by stronger operating cash flow and slightly lower capital expenditure.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite revenue growth.