Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by stronger operating cash flow. The free cash flow margin also increased versus both periods.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow rose significantly from the prior quarter and was also above the year-ago level, leading to higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$516.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$196.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$219.5M
Cash generated by operations before capital spending.
CapEx
$23.5M
Capital spending and related asset purchases.
FCF margin
21.8%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $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% |
| 2023-12-31 | $897.4M | $219.5M | $23.5M | $196.0M | 21.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger operating cash flow
Operating cash flow increased substantially from the prior quarter and was also higher than the year-ago quarter, despite revenue being slightly lower than the prior quarter. This was the primary factor behind the improvement in free cash flow and margin.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow rose significantly from the prior quarter and was also above the year-ago level, leading to higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue was lower while operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.