Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a year ago, but declined from the prior quarter. The margin improved from negative to positive year-over-year, though it weakened sequentially.
- Revenue was unchanged from the prior quarter and higher than a year ago. Operating cash flow and free cash flow were positive, yielding a positive margin, contrasting with a negative margin in the year-ago quarter.
- Compared to the prior quarter, operating cash flow, free cash flow, and margin were lower. Versus the same quarter last year, all metrics were higher, with operating cash flow shifting from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$303.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$334.0M
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
12.1%
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 | $2.4B | $115.0M | $38.0M | $77.0M | 3.2% |
| 2023-09-30 | $2.5B | $425.0M | $39.0M | $386.0M | 15.1% |
| 2023-12-31 | $2.5B | $686.0M | $77.0M | $609.0M | 24.1% |
| 2024-03-31 | $2.5B | $334.0M | $31.0M | $303.0M | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Year-over-year operating cash flow turnaround
Operating cash flow improved from negative to positive, supported by higher net income and favorable working capital changes as noted in the filing.
This allowed the company to generate positive free cash flow compared to a negative free cash flow a year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter and higher than a year ago. Operating cash flow and free cash flow were positive, yielding a positive margin, contrasting with a negative margin in the year-ago quarter.
Compared to the prior quarter, operating cash flow, free cash flow, and margin were lower. Versus the same quarter last year, all metrics were higher, with operating cash flow shifting from negative to positive.
Monitor the sustainability of operating cash flow given the sequential decline, as the filing highlights favorable timing in accounts receivable.