Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher compared to both the prior quarter and the year-ago quarter, but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. The period's cash conversion declined relative to both comparisons.
- Revenue increased, yet operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was slightly higher but remained minimal relative to cash flow.
- Compared to the immediately preceding quarter, revenue was higher while operating cash flow and free cash flow were lower, causing a weaker margin. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, with a lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$569.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$577.0M
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
17.0%
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 | $2.2B | $250.0M | $4.0M | $246.0M | 11.0% |
| 2023-06-30 | $2.6B | $575.0M | $4.0M | $571.0M | 21.9% |
| 2023-09-30 | $1.8B | $650.0M | $2.0M | $648.0M | 35.8% |
| 2023-12-31 | $3.4B | $577.0M | $8.0M | $569.0M | 17.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 48.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | $117.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth with cash flow pressure
Revenue rose compared to both prior periods, but operating cash flow did not follow, resulting in a lower free cash flow margin.
The disconnect between revenue and cash generation may indicate a need to assess cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, yet operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was slightly higher but remained minimal relative to cash flow.
Compared to the immediately preceding quarter, revenue was higher while operating cash flow and free cash flow were lower, causing a weaker margin. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were lower, with a lower margin.
Monitor the relationship between revenue growth and operating cash flow, as the gap between them widened.