Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a negative prior quarter, though it remained lower than the same quarter last year. The improvement was driven by a shift from negative to positive operating cash flow, while capital expenditure stayed relatively stable.
- Revenue was slightly lower than the prior quarter and the year-ago quarter. Operating cash flow turned positive, leading to a positive free cash flow margin, compared to a negative margin in the prior quarter and a lower margin than the year-ago quarter.
- Compared to the prior quarter, revenue was slightly lower, but operating cash flow improved from negative to positive, resulting in a significant improvement in free cash flow. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$823.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$242.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$363.0M
Cash generated by operations before capital spending.
CapEx
$121.0M
Capital spending and related asset purchases.
FCF margin
7.4%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $3.7B | $184.0M | $132.0M | $52.0M | 1.4% |
| 2023-06-30 | $3.7B | $932.0M | $144.0M | $788.0M | 21.5% |
| 2023-09-30 | $3.4B | -$135.0M | $124.0M | -$259.0M | -7.5% |
| 2023-12-31 | $3.3B | $363.0M | $121.0M | $242.0M | 7.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 180.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | 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.
Operating Cash Flow Recovery
Operating cash flow shifted from negative in the prior quarter to positive this quarter, which was the primary factor behind the turnaround in free cash flow. Capital expenditure remained broadly stable across the periods.
This recovery directly enabled the company to generate positive free cash flow this 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 and the year-ago quarter. Operating cash flow turned positive, leading to a positive free cash flow margin, compared to a negative margin in the prior quarter and a lower margin than the year-ago quarter.
Compared to the prior quarter, revenue was slightly lower, but operating cash flow improved from negative to positive, resulting in a significant improvement in free cash flow. Compared to the same quarter last year, revenue was lower, operating cash flow was lower, and free cash flow was lower.
Monitor whether operating cash flow can sustain its positive level in upcoming quarters.