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 lower revenue and operating cash flow. Capital expenditure was lower than both comparison periods, partially offsetting the decline in operating cash flow.
- Revenue declined from both the prior quarter and the year-ago quarter, while operating cash flow also decreased. Capital expenditure was lower, resulting in free cash flow that fell less sharply than operating cash flow, and the free cash flow margin weakened compared to both periods.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure decreased. Versus the same quarter last year, all metrics were lower, with the free cash flow margin showing a notable decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$201.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$205.2M
Cash generated by operations before capital spending.
CapEx
$4.2M
Capital spending and related asset purchases.
FCF margin
4.6%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $5.1B | $773.4M | $11.2M | $762.2M | 15.0% |
| 2023-03-31 | $4.6B | $254.5M | $11.4M | $243.2M | 5.3% |
| 2023-06-30 | $4.4B | $224.8M | $10.3M | $214.5M | 4.9% |
| 2023-09-30 | $4.3B | $205.2M | $4.2M | $201.0M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 245.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue decline
Revenue was lower than both the prior quarter and the same quarter last year, which directly reduced operating cash flow and free cash flow. This is the most observable factor behind the weakened cash generation.
Lower revenue was the primary observable driver of the decline in free cash flow and margin compression.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from both the prior quarter and the year-ago quarter, while operating cash flow also decreased. Capital expenditure was lower, resulting in free cash flow that fell less sharply than operating cash flow, and the free cash flow margin weakened compared to both periods.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure decreased. Versus the same quarter last year, all metrics were lower, with the free cash flow margin showing a notable decline.
Monitor the trend in operating cash flow relative to revenue, as the conversion rate has weakened compared to both the prior quarter and the year-ago period.