Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter and the same quarter last year, while free cash flow improved significantly compared to both periods. The free cash flow margin strengthened, driven by higher operating cash flow and reduced capital expenditure.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower. This combination resulted in free cash flow that was higher than both comparison periods, and the free cash flow margin improved accordingly.
- Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$543.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$618.1M
Cash generated by operations before capital spending.
CapEx
$74.7M
Capital spending and related asset purchases.
FCF margin
17.0%
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 | $3.2B | $705.3M | $93.6M | $611.7M | 18.9% |
| 2023-03-31 | $3.0B | $532.4M | $97.7M | $434.7M | 14.6% |
| 2023-06-30 | $3.1B | $536.4M | $95.4M | $441.0M | 14.4% |
| 2023-09-30 | $3.2B | $618.1M | $74.7M | $543.4M | 17.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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.
Operating Cash Flow Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing the primary support for the improved free cash flow and margin.
This stronger cash generation, combined with lower capital spending, drove the free cash flow margin higher.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower. This combination resulted in free cash flow that was higher than both comparison periods, and the free cash flow margin improved accordingly.
Compared to the immediately preceding quarter, revenue was slightly higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
Monitor the trend in capital expenditure, as it was lower in the current quarter compared to both the prior quarter and the year-ago quarter.