Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved substantially compared to both the prior quarter and the same quarter last year, driven by a sharp rise in operating cash flow while revenue remained stable. The free cash flow margin expanded notably.
- Revenue was unchanged from both comparison periods, but operating cash flow increased sharply, leading to higher free cash flow. Capital expenditure remained broadly stable.
- Operating cash flow, free cash flow, and free cash flow margin all exceeded the levels of the prior quarter and the same quarter one year ago.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$444.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$472.9M
Cash generated by operations before capital spending.
CapEx
$28.7M
Capital spending and related asset purchases.
FCF margin
27.4%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.6B | $385.0M | $58.2M | $326.8M | 20.1% |
| 2023-03-31 | $1.6B | $386.5M | $20.0M | $366.5M | 22.9% |
| 2023-06-30 | $1.6B | $335.2M | $27.8M | $307.4M | 18.7% |
| 2023-09-30 | $1.6B | $472.9M | $28.7M | $444.2M | 27.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 Growth
Operating cash flow increased substantially from both the prior quarter and the year-ago quarter, reflecting improved working capital management and higher net income as noted in the filing. This was the primary driver of free cash flow improvement.
Higher operating cash flow directly boosted free cash flow and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from both comparison periods, but operating cash flow increased sharply, leading to higher free cash flow. Capital expenditure remained broadly stable.
Operating cash flow, free cash flow, and free cash flow margin all exceeded the levels of the prior quarter and the same quarter one year ago.
Monitor whether the improvement in operating cash flow driven by working capital management can be sustained.