Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow turned positive from a negative position one year earlier, with operating cash flow shifting from negative to positive. Sequentially, free cash flow increased modestly despite a drop in operating cash flow, as capital expenditure declined and revenue rose.
- Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow improved markedly from negative to positive year over year, but decreased sequentially. Capital expenditure was lower than both prior periods. The resulting free cash flow margin strengthened year over year but weakened slightly sequentially.
- Year over year, free cash flow and margin improved significantly as operating cash flow reversed from a deficit to a surplus. Sequentially, free cash flow rose slightly while the margin edged lower, as revenue growth outpaced the increase in free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$112.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$111.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$125.0M
Cash generated by operations before capital spending.
CapEx
$14.0M
Capital spending and related asset purchases.
FCF margin
9.4%
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 |
|---|---|---|---|---|---|
| 2023-07-01 | $1.2B | -$34.0M | $18.0M | -$52.0M | -4.3% |
| 2023-09-30 | $956.0M | -$35.0M | $14.0M | -$49.0M | -5.1% |
| 2023-12-31 | $1.0B | $141.0M | $39.0M | $102.0M | 10.1% |
| 2024-03-30 | $1.2B | $125.0M | $14.0M | $111.0M | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 Turnaround
Operating cash flow shifted from a negative to a positive amount year over year, a substantial change that was the most prominent observable driver of free cash flow improvement.
This turnaround enabled free cash flow to become positive after being negative in the same quarter one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow improved markedly from negative to positive year over year, but decreased sequentially. Capital expenditure was lower than both prior periods. The resulting free cash flow margin strengthened year over year but weakened slightly sequentially.
Year over year, free cash flow and margin improved significantly as operating cash flow reversed from a deficit to a surplus. Sequentially, free cash flow rose slightly while the margin edged lower, as revenue growth outpaced the increase in free cash flow.
Monitor the trend of capital expenditure, which decreased sharply from the prior quarter.