Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year, leading to higher free cash flow and an improved free cash flow margin.
- Revenue was higher, operating cash flow grew, and capital expenditure increased relative to the prior quarter but was similar to the year-ago level. Free cash flow rose accordingly, and the free cash flow margin strengthened.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure rose significantly. Versus the same quarter one year earlier, all metrics improved, with the free cash flow margin showing notable expansion.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$480.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$540.7M
Cash generated by operations before capital spending.
CapEx
$59.7M
Capital spending and related asset purchases.
FCF margin
27.8%
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 | $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% |
| 2023-12-31 | $1.7B | $540.7M | $59.7M | $480.9M | 27.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 140.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | 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 was higher both sequentially and year over year, driving the improvement in free cash flow. The SEC filing noted that for the full year, the increase in operating cash flow was primarily due to improved working capital management and higher net income.
This quarter's free cash flow margin expanded, supported by the higher operating cash flow relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher, operating cash flow grew, and capital expenditure increased relative to the prior quarter but was similar to the year-ago level. Free cash flow rose accordingly, and the free cash flow margin strengthened.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure rose significantly. Versus the same quarter one year earlier, all metrics improved, with the free cash flow margin showing notable expansion.
Monitor the level of capital expenditure, which increased substantially from the prior quarter.