Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue grew sequentially, yet operating cash flow contracted, causing free cash flow and margin to fall. Compared to the same quarter a year earlier, operating cash flow and free cash flow increased, and the margin was slightly higher.
- The company converted a higher revenue into lower operating cash flow than the prior quarter, while capital expenditure also decreased, resulting in a lower free cash flow and margin. Relative to the year-ago quarter, operating cash flow improved, and capital expenditure increased, but free cash flow still rose, yielding a modestly higher margin.
- Sequentially, free cash flow and margin weakened as operating cash flow declined despite revenue growth. Year over year, free cash flow and margin improved, supported by higher operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$613.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$163.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$254.8M
Cash generated by operations before capital spending.
CapEx
$91.5M
Capital spending and related asset purchases.
FCF margin
11.5%
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 | $1.2B | $281.1M | $66.6M | $214.5M | 18.1% |
| 2023-09-30 | $1.2B | $146.1M | $83.3M | $62.8M | 5.1% |
| 2023-12-31 | $1.3B | $291.2M | $118.9M | $172.3M | 13.3% |
| 2024-03-31 | $1.4B | $254.8M | $91.5M | $163.4M | 11.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -11863.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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 decline sequentially
Operating cash flow decreased from the prior quarter even as revenue rose, which was the primary factor behind the lower free cash flow and margin.
This sequential weakening in cash conversion highlights the need to track operating cash flow relative to revenue trends.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher revenue into lower operating cash flow than the prior quarter, while capital expenditure also decreased, resulting in a lower free cash flow and margin. Relative to the year-ago quarter, operating cash flow improved, and capital expenditure increased, but free cash flow still rose, yielding a modestly higher margin.
Sequentially, free cash flow and margin weakened as operating cash flow declined despite revenue growth. Year over year, free cash flow and margin improved, supported by higher operating cash flow.
Monitor whether operating cash flow can sustain its year-over-year improvement while supporting increased capital expenditure.