Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to both the prior quarter and the same quarter last year, driven by a lower operating cash flow. The free cash flow margin weakened relative to the previous quarter but remained similar to the year-ago period.
- Operating cash flow exceeded revenue by a wide margin, resulting in a free cash flow margin above one hundred percent. Capital expenditure absorbed a portion of operating cash flow, leaving free cash flow positive.
- Revenue, operating cash flow, and free cash flow were all lower than both the prior quarter and the same quarter last year. Capital expenditure was slightly lower than the prior quarter but modestly higher than a year ago, while free cash flow margin weakened versus the prior quarter and was stable year-over-year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$186.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$533.0M
Cash generated by operations before capital spending.
CapEx
$347.0M
Capital spending and related asset purchases.
FCF margin
206.7%
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 | $186.0M | $840.0M | $389.0M | $451.0M | 242.5% |
| 2023-03-31 | $149.0M | $606.0M | $341.0M | $265.0M | 177.9% |
| 2023-06-30 | $139.0M | $1.1B | $379.0M | $740.0M | 532.4% |
| 2023-09-30 | $90.0M | $533.0M | $347.0M | $186.0M | 206.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 70.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 385.6% | 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 Decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, marking the most significant observable change among the cash flow metrics.
This reduction directly contributed to the decrease in free cash flow, outweighing the smaller change in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue by a wide margin, resulting in a free cash flow margin above one hundred percent. Capital expenditure absorbed a portion of operating cash flow, leaving free cash flow positive.
Revenue, operating cash flow, and free cash flow were all lower than both the prior quarter and the same quarter last year. Capital expenditure was slightly lower than the prior quarter but modestly higher than a year ago, while free cash flow margin weakened versus the prior quarter and was stable year-over-year.
Monitor the trend in operating cash flow, as it is the primary component driving free cash flow generation.