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 from the previous quarter. Both metrics weakened from the same quarter one year earlier.
- Revenue was higher than the prior quarter and a year ago. Operating cash flow increased sequentially but was lower year over year, resulting in a free cash flow margin that improved from the prior quarter but weakened compared to the same quarter last year.
- Compared with the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$297.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$421.0M
Cash generated by operations before capital spending.
CapEx
$124.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 | $5.6B | $567.0M | $124.0M | $443.0M | 7.9% |
| 2023-04-01 | $5.4B | $486.0M | $158.0M | $328.0M | 6.1% |
| 2023-07-01 | $5.4B | $379.0M | $125.0M | $254.0M | 4.7% |
| 2023-09-30 | $5.8B | $421.0M | $124.0M | $297.0M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.1B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Free Cash Flow Growth
The sequential increase in free cash flow was driven by higher operating cash flow despite capital expenditure being nearly stable. The free cash flow margin correspondingly improved.
The higher operating cash flow sequentially was the strongest observable driver of the improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and a year ago. Operating cash flow increased sequentially but was lower year over year, resulting in a free cash flow margin that improved from the prior quarter but weakened compared to the same quarter last year.
Compared with the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were lower.
Monitor the operating cash flow trend relative to revenue change, as the year-over-year decline was not accompanied by a revenue decline.