Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Free cash flow improved from the prior quarter but was lower than the year-ago period, reflecting a mixed cash conversion performance.
- Operating cash flow increased from the prior quarter, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was slightly higher than both comparison periods.
- Compared to the prior quarter, free cash flow and margin improved as operating cash flow rose. Versus the same quarter last year, free cash flow and margin weakened due to lower operating cash flow and higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$518.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$592.4M
Cash generated by operations before capital spending.
CapEx
$74.2M
Capital spending and related asset purchases.
FCF margin
20.5%
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 | $2.5B | -$175.0M | $86.4M | -$261.4M | -10.3% |
| 2023-03-31 | $2.5B | $455.3M | $66.6M | $388.7M | 15.8% |
| 2023-06-30 | $2.5B | $487.0M | $71.0M | $416.0M | 16.9% |
| 2023-09-30 | $2.5B | $592.4M | $74.2M | $518.2M | 20.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -760.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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.
Operating Cash Flow Recovery
Operating cash flow increased from the prior quarter, driving the improvement in free cash flow and margin. This was the strongest observable driver of the quarter's cash conversion.
The sequential improvement in operating cash flow directly lifted free cash flow and margin from the prior quarter's level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from the prior quarter, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was slightly higher than both comparison periods.
Compared to the prior quarter, free cash flow and margin improved as operating cash flow rose. Versus the same quarter last year, free cash flow and margin weakened due to lower operating cash flow and higher capital expenditure.
Monitor the trajectory of operating cash flow, which declined year over year despite stable revenue.