Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated positive free cash flow this quarter, a significant improvement from the prior quarter's negative result. However, free cash flow and margin were lower than the same quarter a year ago, reflecting a mixed performance relative to different periods.
- Revenue was higher compared to both the prior quarter and the same quarter last year. Operating cash flow improved sequentially, resulting in positive free cash flow and a positive margin, though both were below the year-ago levels.
- Compared to the prior quarter, free cash flow turned positive and the margin improved. Compared to the same quarter one year earlier, both free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$728.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$101.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$153.0M
Cash generated by operations before capital spending.
CapEx
$52.0M
Capital spending and related asset purchases.
FCF margin
5.1%
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 | $1.9B | $341.0M | $56.0M | $285.0M | 14.9% |
| 2023-06-30 | $2.0B | $430.0M | $84.0M | $346.0M | 17.1% |
| 2023-09-30 | $1.4B | $20.0M | $24.0M | -$4.0M | -0.3% |
| 2023-12-31 | $2.0B | $153.0M | $52.0M | $101.0M | 5.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 Improvement
Operating cash flow increased substantially from the prior quarter, enabling the transition from negative to positive free cash flow.
This improvement was the primary observable factor behind the quarter's free cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher compared to both the prior quarter and the same quarter last year. Operating cash flow improved sequentially, resulting in positive free cash flow and a positive margin, though both were below the year-ago levels.
Compared to the prior quarter, free cash flow turned positive and the margin improved. Compared to the same quarter one year earlier, both free cash flow and margin were lower.
The trend in capital expenditure, which increased from both the prior quarter and the year-ago quarter, given its impact on free cash flow.