Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter, leading to a higher free cash flow and an improved free cash flow margin. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year. After deducting capital expenditure, the resulting free cash flow margin improved sequentially but weakened year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$843.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$317.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$372.2M
Cash generated by operations before capital spending.
CapEx
$55.2M
Capital spending and related asset purchases.
FCF margin
45.0%
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 |
|---|---|---|---|---|---|
| 2023-06-30 | $675.0M | $192.9M | $58.2M | $134.7M | 20.0% |
| 2023-09-30 | $677.6M | $250.1M | $54.3M | $195.8M | 28.9% |
| 2023-12-31 | $677.2M | $252.4M | $56.3M | $196.1M | 29.0% |
| 2024-03-31 | $704.0M | $372.2M | $55.2M | $317.0M | 45.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.8% | 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.
Revenue growth supporting cash generation
Revenue was higher than both the prior quarter and the same quarter last year, providing a larger base for cash conversion. Operating cash flow improved sequentially, contributing to a higher free cash flow.
The sequential improvement in free cash flow margin was driven by a proportionally larger increase in operating cash flow relative to revenue.
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 higher than the prior quarter but lower than the same quarter last year. After deducting capital expenditure, the resulting free cash flow margin improved sequentially but weakened year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite higher revenue.