Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter a year earlier. Free cash flow margin weakened relative to the year-ago period due to higher capital expenditure.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure increased compared to the year-ago quarter, resulting in lower free cash flow and a narrower margin.
- Compared to the prior quarter, revenue was stable while operating cash flow declined. Versus the same quarter a year earlier, revenue and operating cash flow improved, but capital expenditure rose, leading to lower free cash flow and a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$96.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$266.4M
Cash generated by operations before capital spending.
CapEx
$170.2M
Capital spending and related asset purchases.
FCF margin
8.0%
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 | $1.1B | $311.8M | n/a | n/a | n/a |
| 2023-09-30 | $1.1B | $286.1M | n/a | n/a | n/a |
| 2023-12-31 | $1.2B | $279.1M | n/a | n/a | n/a |
| 2024-03-31 | $1.2B | $266.4M | $170.2M | $96.2M | 8.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -767.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.2% | 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.
Capital Expenditure Increase
Capital expenditure was higher than the same quarter a year earlier, outpacing the growth in operating cash flow. This shift absorbed a larger portion of cash from operations.
The higher capital expenditure reduced free cash flow and compressed the free cash flow margin compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure increased compared to the year-ago quarter, resulting in lower free cash flow and a narrower margin.
Compared to the prior quarter, revenue was stable while operating cash flow declined. Versus the same quarter a year earlier, revenue and operating cash flow improved, but capital expenditure rose, leading to lower free cash flow and a weakened margin.
Monitor the trend in capital expenditure relative to operating cash flow, as the current quarter's higher spending reduced free cash flow.