Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin strengthened substantially compared to both the prior quarter and the same quarter a year earlier. Operating cash flow was notably higher, while capital expenditure remained relatively stable, leading to a strong free cash flow conversion.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased sharply relative to both periods, and capital expenditure was slightly lower. This resulted in free cash flow and free cash flow margin that were markedly higher than both comparison periods.
- Compared with the immediately preceding quarter, free cash flow margin improved from a lower level to a higher level, driven by a substantial increase in operating cash flow. Versus the same quarter a year earlier, the margin also improved, with operating cash flow higher and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$679.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$716.5M
Cash generated by operations before capital spending.
CapEx
$36.7M
Capital spending and related asset purchases.
FCF margin
72.5%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $901.3M | $877.7M | $36.7M | $840.9M | 93.3% |
| 2023-06-30 | $948.2M | $221.3M | $42.2M | $179.1M | 18.9% |
| 2023-09-30 | $970.9M | $285.7M | $38.2M | $247.4M | 25.5% |
| 2023-12-31 | $937.3M | $716.5M | $36.7M | $679.8M | 72.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 265.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | 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 prior quarter and the year-ago quarter, driving a significant improvement in free cash flow generation.
This enabled a free cash flow margin that was markedly higher than both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased sharply relative to both periods, and capital expenditure was slightly lower. This resulted in free cash flow and free cash flow margin that were markedly higher than both comparison periods.
Compared with the immediately preceding quarter, free cash flow margin improved from a lower level to a higher level, driven by a substantial increase in operating cash flow. Versus the same quarter a year earlier, the margin also improved, with operating cash flow higher and capital expenditure lower.
Monitor the company's deployment of excess cash toward debt repayment, acquisitions, or share repurchases, as these are identified as principal liquidity requirements in the filing.