Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased year over year but decreased from the prior quarter. The free cash flow margin improved compared to the same quarter last year but weakened sequentially.
- Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow decreased from the prior quarter but increased year over year; capital expenditure was lower in both comparisons, leading to free cash flow that was lower sequentially but higher year over year. The free cash flow margin followed the same pattern.
- Compared to the immediately preceding quarter, free cash flow and margin were lower despite stable revenue, driven by a decline in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by higher revenue, higher operating cash flow, and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$455.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$595.0M
Cash generated by operations before capital spending.
CapEx
$140.0M
Capital spending and related asset purchases.
FCF margin
20.8%
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 | $2.2B | $183.0M | $166.0M | $17.0M | 0.8% |
| 2023-09-30 | $2.2B | $724.0M | $145.0M | $579.0M | 26.9% |
| 2023-12-31 | $2.2B | $897.0M | $198.0M | $699.0M | 31.6% |
| 2024-03-31 | $2.2B | $595.0M | $140.0M | $455.0M | 20.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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 cash flow improvement
Revenue grew compared to the same quarter last year, and operating cash flow increased while capital expenditure decreased, resulting in higher free cash flow and an improved margin.
This strengthened the company's cash generation efficiency relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher than a year ago. Operating cash flow decreased from the prior quarter but increased year over year; capital expenditure was lower in both comparisons, leading to free cash flow that was lower sequentially but higher year over year. The free cash flow margin followed the same pattern.
Compared to the immediately preceding quarter, free cash flow and margin were lower despite stable revenue, driven by a decline in operating cash flow. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by higher revenue, higher operating cash flow, and lower capital expenditure.
Monitor the trend in operating cash flow, as it declined from the prior quarter while revenue remained flat.