Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved sequentially but weakened compared to the year-ago quarter.
- Operating cash flow was higher than the prior quarter and stable versus the year-ago quarter, while capital expenditure was lower than the prior quarter and unchanged year over year. Free cash flow improved sequentially but was slightly lower than the same quarter last year, with the margin reflecting a similar pattern.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved margin. Versus the same quarter one year earlier, revenue was higher while free cash flow was slightly lower, resulting in a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$985.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$58.0M
Capital spending and related asset purchases.
FCF margin
33.4%
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 | $3.1B | $1.0B | $70.0M | $972.0M | 31.1% |
| 2023-03-31 | $3.9B | $443.0M | $76.0M | $367.0M | 9.5% |
| 2023-06-30 | $3.2B | $688.0M | $69.0M | $619.0M | 19.5% |
| 2023-09-30 | $3.0B | $1.0B | $58.0M | $985.0M | 33.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 216.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.4B | 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 Strength
Operating cash flow was higher than the prior quarter and matched the year-ago level, despite lower sequential revenue. This was the strongest observable driver of the free cash flow improvement.
Higher operating cash flow directly supported the sequential increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter and stable versus the year-ago quarter, while capital expenditure was lower than the prior quarter and unchanged year over year. Free cash flow improved sequentially but was slightly lower than the same quarter last year, with the margin reflecting a similar pattern.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved margin. Versus the same quarter one year earlier, revenue was higher while free cash flow was slightly lower, resulting in a weakened margin.
Monitor the relationship between revenue and operating cash flow, as revenue declined sequentially while operating cash flow increased.