Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply from the prior quarter and was slightly below the year-ago level, reflecting a lower operating cash flow relative to revenue. The free cash flow margin weakened significantly compared to both periods.
- Operating cash flow as a proportion of revenue was lower than both the preceding quarter and the same quarter last year, while capital expenditure also decreased but not enough to offset the drop in operating cash flow, resulting in a lower free cash flow margin.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, with the margin weakening substantially. Versus the year-ago quarter, revenue and operating cash flow were lower, and free cash flow and margin were slightly lower as well.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$657.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$20.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$173.4M
Cash generated by operations before capital spending.
CapEx
$152.8M
Capital spending and related asset purchases.
FCF margin
1.3%
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 | $2.1B | $286.2M | $161.0M | $125.2M | 5.9% |
| 2023-09-30 | $2.2B | $547.7M | $311.7M | $236.0M | 10.8% |
| 2023-12-31 | $1.8B | $481.6M | $206.3M | $275.3M | 15.0% |
| 2024-03-31 | $1.5B | $173.4M | $152.8M | $20.6M | 1.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 20.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash Conversion Pressure
The current quarter's free cash flow margin was lower than both the prior quarter and the year-ago period, primarily due to operating cash flow declining at a faster pace than revenue. Capital expenditure decreased but remained a significant use of cash.
If operating cash flow does not recover relative to revenue, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than both the preceding quarter and the same quarter last year, while capital expenditure also decreased but not enough to offset the drop in operating cash flow, resulting in a lower free cash flow margin.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, with the margin weakening substantially. Versus the year-ago quarter, revenue and operating cash flow were lower, and free cash flow and margin were slightly lower as well.
Monitor the trajectory of operating cash flow relative to revenue in upcoming quarters to assess whether the cash conversion pattern stabilizes.