Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was essentially stable compared to the prior quarter and the same quarter last year, but operating cash flow declined, causing free cash flow and its margin to weaken. The cash conversion performance weakened relative to both the preceding quarter and the year-ago period.
- Revenue was stable, but operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was higher. As a result, free cash flow and its margin declined.
- Compared to the immediately preceding quarter, revenue was slightly higher, but operating cash flow, free cash flow, and margin all decreased. Versus the same quarter one year earlier, revenue was slightly lower, and operating cash flow, free cash flow, and margin also declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$490.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$130.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$151.0M
Cash generated by operations before capital spending.
CapEx
$20.7M
Capital spending and related asset purchases.
FCF margin
14.2%
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 | $861.5M | $192.4M | $22.5M | $169.9M | 19.7% |
| 2023-03-31 | $923.0M | $69.0M | $22.3M | $46.7M | 5.1% |
| 2023-06-30 | $912.5M | $161.1M | $17.7M | $143.4M | 15.7% |
| 2023-09-30 | $917.9M | $151.0M | $20.7M | $130.3M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Operating Cash Flow
Operating cash flow decreased compared to both the prior quarter and the same quarter last year, while revenue remained relatively unchanged. This was the primary factor behind the decline in free cash flow and margin.
If operating cash flow does not stabilize, free cash flow generation could remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was higher. As a result, free cash flow and its margin declined.
Compared to the immediately preceding quarter, revenue was slightly higher, but operating cash flow, free cash flow, and margin all decreased. Versus the same quarter one year earlier, revenue was slightly lower, and operating cash flow, free cash flow, and margin also declined.
Monitor the trajectory of operating cash flow, as it declined despite stable revenue.