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 negative position a year ago, though it decreased sharply from the prior quarter. The cash conversion rate improved year over year but weakened sequentially.
- Revenue increased year over year, and operating cash flow improved from negative to positive, resulting in positive free cash flow. However, the free cash flow margin remained low, as capital expenditure consumed a significant portion of operating cash flow.
- Compared to the prior quarter, revenue was slightly lower, operating cash flow and free cash flow were substantially lower, and the free cash flow margin weakened. Compared to the same quarter last year, revenue was higher, operating cash flow and free cash flow improved from negative to positive, and the free cash flow margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$650.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$15.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$89.0M
Cash generated by operations before capital spending.
CapEx
$74.0M
Capital spending and related asset purchases.
FCF margin
0.7%
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 | $1.7B | $28.0M | $53.0M | -$25.0M | -1.5% |
| 2023-09-30 | $2.1B | $373.0M | $74.0M | $299.0M | 14.4% |
| 2023-12-31 | $2.1B | $455.0M | $94.0M | $361.0M | 17.0% |
| 2024-03-31 | $2.0B | $89.0M | $74.0M | $15.0M | 0.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 9.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 cash flow recovery
Operating cash flow turned from negative to positive year over year, driven by higher cash earnings and lower tax payments as noted in the filing. This allowed free cash flow to also turn positive.
The company generated positive free cash flow this quarter compared to a negative outcome one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased year over year, and operating cash flow improved from negative to positive, resulting in positive free cash flow. However, the free cash flow margin remained low, as capital expenditure consumed a significant portion of operating cash flow.
Compared to the prior quarter, revenue was slightly lower, operating cash flow and free cash flow were substantially lower, and the free cash flow margin weakened. Compared to the same quarter last year, revenue was higher, operating cash flow and free cash flow improved from negative to positive, and the free cash flow margin strengthened.
Monitor the level of capital expenditure relative to operating cash flow, as it absorbed most of the operating cash flow in the current quarter.