Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened sequentially and declined from the prior year, despite stable revenue. Operating cash flow was lower in both comparisons, while capital expenditure increased from the prior quarter.
- Revenue was stable, but operating cash flow decreased, leading to lower free cash flow and a narrower free cash flow margin compared to both the prior quarter and the same quarter last year.
- Compared to the prior quarter, free cash flow and margin were lower, driven by higher capital expenditure and slightly lower operating cash flow. Versus the same quarter last year, free cash flow and margin also weakened, as operating cash flow declined while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$560.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$219.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$311.9M
Cash generated by operations before capital spending.
CapEx
$92.3M
Capital spending and related asset purchases.
FCF margin
10.4%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $2.1B | $1.9M | $64.5M | -$62.6M | -3.0% |
| 2023-07-01 | $2.1B | $189.6M | $51.4M | $138.2M | 6.6% |
| 2023-09-30 | $2.1B | $322.6M | $57.1M | $265.5M | 12.7% |
| 2023-12-30 | $2.1B | $311.9M | $92.3M | $219.6M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 153.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure was higher than the prior quarter, contributing to the decline in free cash flow despite stable revenue. This was the strongest observable driver of the quarter's cash conversion change.
Higher capital expenditure reduced free cash flow and margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow decreased, leading to lower free cash flow and a narrower free cash flow margin compared to both the prior quarter and the same quarter last year.
Compared to the prior quarter, free cash flow and margin were lower, driven by higher capital expenditure and slightly lower operating cash flow. Versus the same quarter last year, free cash flow and margin also weakened, as operating cash flow declined while revenue was higher.
Monitor the trend in capital expenditure, which rose sequentially and may continue to pressure free cash flow.