Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the previous quarter and year-ago quarter. Operating cash flow drove the increase, with capital expenditure minimal.
- Operating cash flow was significantly higher than capital expenditure, leading to a high free cash flow margin. The company converted revenue efficiently into free cash flow, with margins stronger than prior periods.
- Free cash flow and margin improved compared to the previous quarter and were significantly better than the year-ago quarter, which had negative free cash flow. Revenue was slightly lower than the previous quarter but higher than a year ago.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$181.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$313.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$313.9M
Cash generated by operations before capital spending.
CapEx
$154000
Capital spending and related asset purchases.
FCF margin
46.5%
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 | $629.1M | -$745.4M | $814000 | -$746.3M | -118.6% |
| 2023-03-31 | $772.5M | $463.1M | $50000 | $463.0M | 59.9% |
| 2023-06-30 | $707.9M | $151.1M | $329000 | $150.8M | 21.3% |
| 2023-09-30 | $674.1M | $313.9M | $154000 | $313.8M | 46.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -13853.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $2.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow increased substantially from the previous quarter, driving a higher free cash flow margin despite a slight revenue decrease.
The strengthened cash flow provides financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was significantly higher than capital expenditure, leading to a high free cash flow margin. The company converted revenue efficiently into free cash flow, with margins stronger than prior periods.
Free cash flow and margin improved compared to the previous quarter and were significantly better than the year-ago quarter, which had negative free cash flow. Revenue was slightly lower than the previous quarter but higher than a year ago.
Monitor the sustainability of operating cash flow levels given the revenue decline from the prior quarter.