Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, cash conversion improved sequentially as operating cash flow turned positive, yielding free cash flow and a positive margin. However, compared to the same period last year, free cash flow and margin were lower despite higher revenue.
- Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow shifted from negative to positive, while capital expenditure remained broadly stable, resulting in positive free cash flow and a positive free cash flow margin.
- Sequentially, free cash flow and margin improved from negative to positive. Relative to the same quarter one year earlier, free cash flow and margin were lower, even though revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$131.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$307.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$383.0M
Cash generated by operations before capital spending.
CapEx
$76.0M
Capital spending and related asset purchases.
FCF margin
4.0%
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 | $8.0B | $814.2M | $99.0M | $715.2M | 8.9% |
| 2023-03-31 | $7.3B | -$745.0M | $60.0M | -$805.0M | -11.0% |
| 2023-06-30 | $7.6B | -$11.0M | $75.0M | -$86.0M | -1.1% |
| 2023-09-30 | $7.7B | $383.0M | $76.0M | $307.0M | 4.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | 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 turned from negative in the prior quarter to positive in the current quarter, representing a meaningful shift in cash conversion.
This recovery drove free cash flow positive, reversing the prior period's cash outflow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than both the prior quarter and the year-ago quarter. Operating cash flow shifted from negative to positive, while capital expenditure remained broadly stable, resulting in positive free cash flow and a positive free cash flow margin.
Sequentially, free cash flow and margin improved from negative to positive. Relative to the same quarter one year earlier, free cash flow and margin were lower, even though revenue was higher.
Monitor whether operating cash flow can sustain its positive level, given the substantial decline from the year-ago quarter.