Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from the prior quarter and the year-ago quarter, driven by lower operating cash flow and higher capital expenditure. The free cash flow margin weakened sequentially but improved compared to the same quarter last year.
- Revenue increased from the prior quarter, yet operating cash flow decreased, resulting in a lower free cash flow margin. Capital expenditure rose, further reducing free cash flow conversion.
- Compared to the prior quarter, free cash flow and margin were lower despite higher revenue. Versus the same quarter last year, free cash flow was lower and revenue was lower, but the free cash flow margin was higher.
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
$292.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$480.0M
Cash generated by operations before capital spending.
CapEx
$188.0M
Capital spending and related asset purchases.
FCF margin
18.6%
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 | $2.0B | $947.0M | $69.0M | $878.0M | 43.6% |
| 2023-06-30 | $1.8B | $712.0M | $95.0M | $617.0M | 34.8% |
| 2023-09-30 | $1.3B | $618.0M | $147.0M | $471.0M | 37.0% |
| 2023-12-31 | $1.6B | $480.0M | $188.0M | $292.0M | 18.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.0% | 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, despite a sequential revenue increase. This was the strongest observable factor behind the free cash flow decrease.
Lower operating cash flow directly reduced free cash flow, even as capital expenditure rose.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter, yet operating cash flow decreased, resulting in a lower free cash flow margin. Capital expenditure rose, further reducing free cash flow conversion.
Compared to the prior quarter, free cash flow and margin were lower despite higher revenue. Versus the same quarter last year, free cash flow was lower and revenue was lower, but the free cash flow margin was higher.
Monitor the trend in capital expenditure relative to operating cash flow, as higher spending reduced free cash flow this quarter.