Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially but weakened relative to the year-ago period.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in a free cash flow margin that indicates a high rate of cash conversion from revenue.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue and free cash flow were higher, but the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$20.8M
Capital spending and related asset purchases.
FCF margin
71.1%
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 | $1.4B | $902.4M | $15.2M | $887.2M | 61.5% |
| 2023-06-30 | $1.4B | $650.4M | $20.5M | $629.9M | 46.3% |
| 2023-09-30 | $1.3B | $856.7M | $19.9M | $836.8M | 62.6% |
| 2023-12-31 | $1.4B | $1.0B | $20.8M | $1.0B | 71.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 125.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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 Growth
Operating cash flow increased compared to both the prior quarter and the same quarter last year, providing the primary support for the rise in free cash flow.
Higher operating cash flow directly drove free cash flow higher in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in a free cash flow margin that indicates a high rate of cash conversion from revenue.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, revenue and free cash flow were higher, but the free cash flow margin was lower.
Monitor the trend in free cash flow margin, which weakened on a year-over-year basis despite higher absolute free cash flow.