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 but higher than the same quarter last year. Free cash flow margin improved compared to the prior year, while operating cash flow and free cash flow both increased year over year.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, supporting a free cash flow margin that was stable sequentially and improved year over year. Capital expenditure was higher than both comparison periods, partially offsetting the operating cash flow increase.
- Compared to the prior quarter, revenue was lower but operating cash flow was higher, while free cash flow was slightly lower due to higher capital expenditure. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin showing improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$508.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$698.0M
Cash generated by operations before capital spending.
CapEx
$190.0M
Capital spending and related asset purchases.
FCF margin
14.4%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $3.2B | $807.0M | $212.0M | $595.0M | 18.4% |
| 2023-03-31 | $3.4B | $190.0M | $111.0M | $79.0M | 2.3% |
| 2023-06-30 | $3.6B | $658.0M | $143.0M | $515.0M | 14.3% |
| 2023-09-30 | $3.5B | $698.0M | $190.0M | $508.0M | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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 Growth
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, providing the primary support for free cash flow despite higher capital spending.
Higher operating cash flow drove the year-over-year improvement in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, supporting a free cash flow margin that was stable sequentially and improved year over year. Capital expenditure was higher than both comparison periods, partially offsetting the operating cash flow increase.
Compared to the prior quarter, revenue was lower but operating cash flow was higher, while free cash flow was slightly lower due to higher capital expenditure. Compared to the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin showing improvement.
Monitor the trend in capital expenditure, which was higher in the current quarter compared to both the prior quarter and the year-ago quarter.