Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow turned positive from a negative prior quarter and was higher than the year-ago period, leading to a free cash flow margin that improved from negative to positive and exceeded the prior year's margin.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that was positive and improved sequentially and year-over-year.
- Compared to the prior quarter, free cash flow improved from negative to positive, driven by a swing in operating cash flow and lower capital expenditure. Versus the same quarter last year, free cash flow was higher, supported by higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$145.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$457.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$489.4M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
7.7%
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 | $5.5B | $113.3M | $29.5M | $83.8M | 1.5% |
| 2023-09-30 | $5.6B | $491.2M | $37.7M | $453.5M | 8.1% |
| 2023-12-31 | $5.8B | -$797.9M | $51.7M | -$849.6M | -14.7% |
| 2024-03-31 | $6.0B | $489.4M | $32.0M | $457.4M | 7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Operating Cash Flow Recovery
Operating cash flow turned positive this quarter after a negative prior quarter, and was higher than the year-ago period. This was the primary factor behind the improvement in free cash flow.
The positive operating cash flow enabled the company to generate free cash flow despite modest capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that was positive and improved sequentially and year-over-year.
Compared to the prior quarter, free cash flow improved from negative to positive, driven by a swing in operating cash flow and lower capital expenditure. Versus the same quarter last year, free cash flow was higher, supported by higher revenue and operating cash flow.
Monitor whether operating cash flow can sustain its positive level after the prior quarter's significant negative figure.