Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow was significantly higher than capital expenditure, yielding a strong free cash flow margin. Revenue was lower than the immediately preceding quarter but higher than the year-ago quarter.
- The company converted a substantial portion of revenue into free cash flow, driven by operating cash flow far exceeding capital expenditure. The margin was solidly positive, reflecting efficient cash generation from operations.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow improved markedly, while revenue was lower. Against the same quarter one year earlier, operating cash flow and free cash flow were also higher, with revenue lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$968.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$73.0M
Capital spending and related asset purchases.
FCF margin
28.7%
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 | $2.0B | $1.1B | $104.0M | $1.0B | 51.7% |
| 2023-03-31 | $4.5B | $120.0M | $70.0M | $50.0M | 1.1% |
| 2023-06-30 | $6.7B | $384.0M | $74.0M | $310.0M | 4.6% |
| 2023-09-30 | $3.4B | $1.0B | $73.0M | $968.0M | 28.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 271.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | 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 Strength
Operating cash flow was the strongest observable factor, substantially higher than in both the preceding and year-ago quarters. This more than offset the lower revenue and drove the improved free cash flow margin.
The elevated operating cash flow directly resulted in a meaningfully higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a substantial portion of revenue into free cash flow, driven by operating cash flow far exceeding capital expenditure. The margin was solidly positive, reflecting efficient cash generation from operations.
Compared with the immediately preceding quarter, operating cash flow and free cash flow improved markedly, while revenue was lower. Against the same quarter one year earlier, operating cash flow and free cash flow were also higher, with revenue lower.
Monitor changes in operating cash flow relative to revenue, as it was the primary driver of free cash flow variation.