Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a year ago, driven by a substantial improvement in operating cash flow. The margin strengthened from negative to positive, though it remained lower than the prior quarter.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow improved markedly from the year-ago period but was lower than the prior quarter. Capital expenditure was slightly higher than both comparison periods. Free cash flow turned positive year over year, and the free cash flow margin improved from negative to positive, though it weakened sequentially.
- Compared to the prior quarter, revenue was lower, operating cash flow was lower, and free cash flow was lower, resulting in a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow improved from negative to positive, leading to a stronger free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$163.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$247.2M
Cash generated by operations before capital spending.
CapEx
$83.8M
Capital spending and related asset purchases.
FCF margin
3.9%
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 | $4.7B | $524.0M | $56.9M | $467.1M | 9.9% |
| 2023-09-30 | $4.9B | $922.3M | $83.2M | $839.1M | 17.2% |
| 2023-12-31 | $4.4B | $934.8M | $83.5M | $851.3M | 19.2% |
| 2024-03-31 | $4.2B | $247.2M | $83.8M | $163.4M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 improved significantly from the year-ago quarter, turning free cash flow positive. This was the strongest observable driver of the quarter's cash conversion improvement.
The improvement in operating cash flow was the primary factor behind the positive free cash flow and margin expansion versus the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow improved markedly from the year-ago period but was lower than the prior quarter. Capital expenditure was slightly higher than both comparison periods. Free cash flow turned positive year over year, and the free cash flow margin improved from negative to positive, though it weakened sequentially.
Compared to the prior quarter, revenue was lower, operating cash flow was lower, and free cash flow was lower, resulting in a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, and free cash flow improved from negative to positive, leading to a stronger free cash flow margin.
Monitor the trajectory of operating cash flow relative to revenue, as it declined sequentially despite higher revenue year over year.