Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were positive this quarter, compared to negative revenue in the prior quarter. Operating cash flow and free cash flow margin both strengthened year over year.
- Operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin was high, supported by a positive revenue figure in contrast to the prior quarter's negative revenue.
- Compared to the prior quarter, revenue turned positive, operating cash flow was higher, capital expenditure was lower, and free cash flow improved. Versus the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were higher, and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$909.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$390.7M
Capital spending and related asset purchases.
FCF margin
502.7%
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 | $193.8M | $1.2B | $658.2M | $526.8M | 271.8% |
| 2023-03-31 | $2.5B | $1.1B | $461.9M | $608.6M | 24.1% |
| 2023-06-30 | -$2.1B | $1.2B | $420.9M | $788.5M | -37.2% |
| 2023-09-30 | $181.0M | $1.3B | $390.7M | $909.9M | 502.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 157.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 215.9% | 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.
Improved free cash flow generation
Free cash flow increased compared to both the prior quarter and the same quarter one year earlier, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin also strengthened significantly.
Higher free cash flow provides increased financial flexibility from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, producing positive free cash flow. The free cash flow margin was high, supported by a positive revenue figure in contrast to the prior quarter's negative revenue.
Compared to the prior quarter, revenue turned positive, operating cash flow was higher, capital expenditure was lower, and free cash flow improved. Versus the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were higher, and capital expenditure was lower.
Monitor the sustainability of positive revenue and free cash flow in the context of prior period volatility.