Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a negative position a year earlier, driven by a significant improvement in operating cash flow. Revenue was slightly higher than the prior year but lower than the preceding quarter.
- Operating cash flow as a percentage of revenue improved markedly compared to the same quarter last year, leading to a positive free cash flow margin. Capital expenditure was stable relative to the year-ago quarter but lower than the previous quarter.
- Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was slightly higher, operating cash flow and free cash flow were substantially higher, and free cash flow margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$818.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$100.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$257.4M
Cash generated by operations before capital spending.
CapEx
$157.2M
Capital spending and related asset purchases.
FCF margin
3.0%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $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% |
| 2024-03-30 | $3.4B | $257.4M | $157.2M | $100.2M | 3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 50.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Recovery
Operating cash flow increased substantially compared to the same quarter last year, flipping free cash flow from negative to positive. This was the strongest observable change among the supplied metrics.
The improvement in operating cash flow was the primary factor behind the positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue improved markedly compared to the same quarter last year, leading to a positive free cash flow margin. Capital expenditure was stable relative to the year-ago quarter but lower than the previous quarter.
Compared to the preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was slightly higher, operating cash flow and free cash flow were substantially higher, and free cash flow margin improved from negative to positive.
Monitor whether operating cash flow can sustain its improved level relative to revenue in upcoming quarters.