Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue held stable, but operating cash flow declined sharply, reducing free cash flow and its margin compared to both the prior quarter and the same quarter last year. The sequential drop in operating cash flow was the main factor behind the quarter's weaker cash conversion.
- Operating cash flow fell while revenue was flat, causing free cash flow to contract and the free cash flow margin to narrow. Capital expenditure rose relative to the prior quarter, further weighing on free cash flow.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin declined. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$93.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$265.5M
Cash generated by operations before capital spending.
CapEx
$171.9M
Capital spending and related asset purchases.
FCF margin
3.7%
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 | $2.4B | $455.0M | $120.4M | $334.7M | 14.1% |
| 2023-06-30 | $2.5B | $582.5M | $137.2M | $445.3M | 17.7% |
| 2023-09-30 | $2.5B | $480.5M | $131.2M | $349.3M | 14.1% |
| 2023-12-31 | $2.5B | $265.5M | $171.9M | $93.5M | 3.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 33.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $560.6M | 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 substantially lower sequentially and year-over-year, while revenue remained stable. This was the strongest observable factor reducing free cash flow.
The lower operating cash flow drove a narrower free cash flow margin despite unchanged revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow fell while revenue was flat, causing free cash flow to contract and the free cash flow margin to narrow. Capital expenditure rose relative to the prior quarter, further weighing on free cash flow.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin declined. Versus the same quarter one year earlier, revenue was higher but operating cash flow, free cash flow, and margin were all lower.
Monitor whether operating cash flow recovers toward prior levels, given the significant sequential decline despite stable revenue.