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 that more than offset increased capital expenditure. However, free cash flow and its margin weakened relative to the immediately preceding quarter.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow rose year-over-year but fell from the prior quarter. Capital expenditure increased versus both periods. The resulting free cash flow and free cash flow margin were higher than a year ago but lower than the previous quarter.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, as operating cash flow declined while capital expenditure rose slightly. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, supported by a larger increase in operating cash flow relative to capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$590.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$187.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$396.4M
Cash generated by operations before capital spending.
CapEx
$208.5M
Capital spending and related asset purchases.
FCF margin
4.9%
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 | $3.5B | $362.9M | $167.9M | $195.0M | 5.5% |
| 2023-09-30 | $3.6B | $161.7M | $200.0M | -$38.3M | -1.1% |
| 2023-12-31 | $3.7B | $452.4M | $206.4M | $246.0M | 6.6% |
| 2024-03-31 | $3.8B | $396.4M | $208.5M | $187.9M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year operating cash flow growth
Operating cash flow was higher than the same quarter last year, providing the primary support for the year-over-year improvement in free cash flow. This increase occurred even as capital expenditure also rose.
The stronger operating cash flow was the strongest observable driver of the year-over-year free cash flow improvement.
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 rose year-over-year but fell from the prior quarter. Capital expenditure increased versus both periods. The resulting free cash flow and free cash flow margin were higher than a year ago but lower than the previous quarter.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, as operating cash flow declined while capital expenditure rose slightly. Compared to the same quarter one year earlier, free cash flow and free cash flow margin were higher, supported by a larger increase in operating cash flow relative to capital expenditure.
Monitor the trajectory of operating cash flow, which declined from the prior quarter despite higher revenue.