Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both increased compared to the prior quarter and the same quarter last year. The free cash flow margin improved versus the year-ago period but weakened slightly from the preceding quarter.
- Operating cash flow rose relative to the prior quarter and the year-ago period, while capital expenditure increased modestly. The resulting free cash flow improved year over year but was slightly lower than the preceding quarter, leading to a mixed cash conversion performance.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weaker free cash flow margin. Versus the same quarter last year, all metrics improved, with revenue, operating cash flow, capital expenditure, free cash flow, and margin all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$529.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$810.0M
Cash generated by operations before capital spending.
CapEx
$281.0M
Capital spending and related asset purchases.
FCF margin
8.0%
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 | $5.9B | $898.0M | $269.0M | $629.0M | 10.7% |
| 2023-03-31 | $5.7B | $461.0M | $310.0M | $151.0M | 2.6% |
| 2023-06-30 | $6.3B | $859.0M | $277.0M | $582.0M | 9.2% |
| 2023-09-30 | $6.6B | $810.0M | $281.0M | $529.0M | 8.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the year-ago quarter, providing a larger base for cash generation. This was the strongest observable driver supporting the improvement in free cash flow compared to the same quarter last year.
Higher revenue contributed to the year-over-year increase in free cash flow, despite a slight sequential decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to the prior quarter and the year-ago period, while capital expenditure increased modestly. The resulting free cash flow improved year over year but was slightly lower than the preceding quarter, leading to a mixed cash conversion performance.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weaker free cash flow margin. Versus the same quarter last year, all metrics improved, with revenue, operating cash flow, capital expenditure, free cash flow, and margin all higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased in both comparisons and directly affects free cash flow generation.