Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to the same quarter one year earlier, driven by higher revenue and operating cash flow alongside lower capital expenditure. Relative to the preceding quarter, free cash flow decreased as operating cash flow was lower and capital expenditure was higher.
- Revenue declined from the prior quarter, while operating cash flow fell more sharply, resulting in a lower free cash flow margin. Year-over-year, revenue grew and operating cash flow improved, while capital expenditure decreased, leading to a substantially higher free cash flow margin.
- Versus the preceding quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow and its margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$376.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$653.0M
Capital spending and related asset purchases.
FCF margin
10.8%
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 | -$1.6B | $1.3B | $1.4B | -$68.0M | 4.2% |
| 2023-09-30 | $842.0M | $1.1B | $1.1B | -$56.0M | -6.7% |
| 2023-12-31 | $3.7B | $1.4B | $519.0M | $895.0M | 24.0% |
| 2024-03-31 | $3.5B | $1.0B | $653.0M | $376.0M | 10.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.7% | 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.
Stronger operating cash flow and lower capex lift free cash flow year-over-year
Compared to the same quarter last year, operating cash flow improved and capital expenditure was reduced, which together produced a higher free cash flow. The free cash flow margin rose substantially, reflecting a more efficient conversion of revenue into cash available for discretionary uses.
This improvement provides greater financial flexibility for capital allocation, including the share repurchase program referenced in the filing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, while operating cash flow fell more sharply, resulting in a lower free cash flow margin. Year-over-year, revenue grew and operating cash flow improved, while capital expenditure decreased, leading to a substantially higher free cash flow margin.
Versus the preceding quarter, revenue and operating cash flow were lower, capital expenditure was higher, and free cash flow and its margin weakened. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved.
Monitor the trajectory of operating cash flow relative to revenue, as the current level declined notably from the prior quarter while revenue decreased to a lesser extent.