Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved sequentially but remained well below the prior-year quarter. The free cash flow margin strengthened versus the preceding quarter but weakened compared to the same quarter one year earlier.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sharply from the preceding quarter, leading to a higher free cash flow margin, though the margin was lower than the same quarter last year. Capital expenditure was relatively stable across all periods.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$852.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$280.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$330.5M
Cash generated by operations before capital spending.
CapEx
$50.4M
Capital spending and related asset purchases.
FCF margin
10.1%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $2.7B | $277.1M | $52.4M | $224.7M | 8.5% |
| 2023-03-31 | $2.6B | $259.6M | $48.4M | $211.2M | 8.0% |
| 2023-06-30 | $2.7B | $185.4M | $49.4M | $136.0M | 5.0% |
| 2023-09-30 | $2.8B | $330.5M | $50.4M | $280.1M | 10.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 147.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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.
Sequential operating cash flow recovery
Operating cash flow increased substantially from the prior quarter, driving a similar rise in free cash flow. This was the strongest observable driver of the quarter's cash conversion performance.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin compared to the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sharply from the preceding quarter, leading to a higher free cash flow margin, though the margin was lower than the same quarter last year. Capital expenditure was relatively stable across all periods.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
Monitor the company's ability to sustain the sequential improvement in operating cash flow given the significant decline from the year-ago level.