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 sequentially but declined from the prior year. The free cash flow margin strengthened versus the previous quarter yet remained below the year-ago level.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sequentially, leading to higher free cash flow and an improved free cash flow margin, though capital expenditure also increased slightly.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$875.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$925.0M
Cash generated by operations before capital spending.
CapEx
$50.0M
Capital spending and related asset purchases.
FCF margin
21.5%
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 | $3.7B | $1.2B | $56.0M | $1.2B | 31.2% |
| 2023-03-31 | $3.8B | $1.1B | $41.0M | $1.0B | 26.4% |
| 2023-06-30 | $4.0B | $561.0M | $43.0M | $518.0M | 12.9% |
| 2023-09-30 | $4.1B | $925.0M | $50.0M | $875.0M | 21.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Sequential Cash Flow Recovery
Operating cash flow increased substantially from the prior quarter, driving a higher free cash flow and a stronger free cash flow margin. This sequential improvement occurred despite a modest rise in capital expenditure.
The quarter's cash conversion efficiency improved compared to the immediate prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sequentially, leading to higher free cash flow and an improved free cash flow margin, though capital expenditure also increased slightly.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
Monitor the trajectory of operating cash flow relative to revenue, as it showed a sequential improvement but remained below the year-ago level.