Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were higher than both the prior quarter and the same quarter one year earlier, while revenue was lower than the prior quarter but higher than the year-ago quarter. The free cash flow margin improved sequentially and year-over-year.
- The company generated operating cash flow exceeding capital expenditure, resulting in positive free cash flow. The free cash flow margin strengthened relative to both the prior quarter and the year-ago quarter, indicating improved cash conversion from revenue.
- Compared to the preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$503.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$536.5M
Cash generated by operations before capital spending.
CapEx
$33.5M
Capital spending and related asset purchases.
FCF margin
10.0%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $5.1B | $365.4M | $31.7M | $333.7M | 6.5% |
| 2023-06-30 | $5.6B | $228.2M | $39.6M | $188.6M | 3.4% |
| 2023-09-30 | $5.6B | $468.6M | $43.4M | $425.2M | 7.6% |
| 2023-12-31 | $5.0B | $536.5M | $33.5M | $503.0M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 169.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 growth
Operating cash flow was higher than both the preceding quarter and the year-ago quarter, serving as the strongest observable driver of the improvement in free cash flow and free cash flow margin.
The higher operating cash flow directly supported a free cash flow margin that was above both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated operating cash flow exceeding capital expenditure, resulting in positive free cash flow. The free cash flow margin strengthened relative to both the prior quarter and the year-ago quarter, indicating improved cash conversion from revenue.
Compared to the preceding quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher.
Monitor capital expenditure relative to the prior quarter and year-ago quarter, as it was higher year-over-year but lower sequentially.