Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive and free cash flow margin improved versus the prior quarter, although both were significantly lower than the same quarter last year. Operating cash flow increased relative to the prior quarter but was well below the year-ago level, while capital expenditure was lower than both comparative periods.
- Revenue was higher than the prior quarter but lower than the same quarter last year. Operating cash flow improved sequentially but was weaker year over year, and capital expenditure decreased from both comparative periods. The stronger operating cash flow relative to revenue drove a positive free cash flow margin, contrasting with the prior quarter's negative margin.
- Compared with the immediately preceding quarter, free cash flow turned positive and free cash flow margin improved from negative to positive. Compared with the same quarter one year earlier, free cash flow and free cash flow margin were lower, and revenue also decreased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$580.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$168.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$396.1M
Cash generated by operations before capital spending.
CapEx
$227.2M
Capital spending and related asset purchases.
FCF margin
4.6%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $3.3B | $19.6M | $157.9M | -$138.4M | -4.2% |
| 2023-07-01 | $4.2B | $762.8M | $191.6M | $571.1M | 13.6% |
| 2023-09-30 | $3.4B | $155.6M | $177.1M | -$21.5M | -0.6% |
| 2023-12-30 | $3.7B | $396.1M | $227.2M | $168.9M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 68.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $247.1M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential improvement in operating cash flow
Operating cash flow was higher than the prior quarter, more than offsetting the reduction in capital expenditure and driving a positive swing in free cash flow. This was the strongest observable driver of the current quarter's free cash flow performance.
The positive shift in operating cash flow was the primary reason free cash flow turned from negative to positive quarter over quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than the same quarter last year. Operating cash flow improved sequentially but was weaker year over year, and capital expenditure decreased from both comparative periods. The stronger operating cash flow relative to revenue drove a positive free cash flow margin, contrasting with the prior quarter's negative margin.
Compared with the immediately preceding quarter, free cash flow turned positive and free cash flow margin improved from negative to positive. Compared with the same quarter one year earlier, free cash flow and free cash flow margin were lower, and revenue also decreased.
Monitor whether operating cash flow can sustain the sequential improvement observed this quarter, as it is a key determinant of free cash flow generation.