Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, free cash flow turned positive after a negative prior quarter, driven by a strong improvement in operating cash flow. Revenue remained stable sequentially but increased compared to the same quarter last year.
- Operating cash flow converted to free cash flow after modest capital expenditure, resulting in a positive free cash flow margin. This represents a substantial improvement from the prior quarter's negative margin.
- Compared to the immediate prior quarter, free cash flow and margin improved significantly as operating cash flow shifted from negative to positive. Versus the same quarter a year earlier, all metrics were higher, with operating cash flow and free cash flow both showing improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$993.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$177.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$189.8M
Cash generated by operations before capital spending.
CapEx
$12.1M
Capital spending and related asset purchases.
FCF margin
12.6%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $1.6B | $175.5M | $5.5M | $170.0M | 10.3% |
| 2023-06-30 | $1.8B | $729.2M | $17.0M | $712.2M | 38.7% |
| 2023-09-30 | $1.4B | -$62.0M | $4.7M | -$66.7M | -4.7% |
| 2023-12-31 | $1.4B | $189.8M | $12.1M | $177.7M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 252.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.4B | 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 turnaround
Operating cash flow moved from negative to positive, directly boosting free cash flow. This reversal was the strongest observable driver of the quarter's cash generation.
This reversal was the primary factor behind the quarter's free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted to free cash flow after modest capital expenditure, resulting in a positive free cash flow margin. This represents a substantial improvement from the prior quarter's negative margin.
Compared to the immediate prior quarter, free cash flow and margin improved significantly as operating cash flow shifted from negative to positive. Versus the same quarter a year earlier, all metrics were higher, with operating cash flow and free cash flow both showing improvement.
Monitor whether operating cash flow can remain positive in the coming quarters.