Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared with both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin improved sequentially but declined from the year-ago quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin strengthened moderately compared with the preceding quarter but weakened noticeably relative to the same quarter a year earlier.
- Relative to the prior quarter, free cash flow and operating cash flow both improved materially, while capital expenditure also rose. Compared with the year-ago quarter, operating cash flow and free cash flow were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$372.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$92.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$149.0M
Cash generated by operations before capital spending.
CapEx
$56.2M
Capital spending and related asset purchases.
FCF margin
14.5%
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 | $584.4M | $123.2M | $15.7M | $107.5M | 18.4% |
| 2023-06-30 | $605.9M | $175.2M | $29.9M | $145.3M | 24.0% |
| 2023-09-30 | $624.7M | $42.6M | $16.2M | $26.4M | 4.2% |
| 2023-12-31 | $640.1M | $149.0M | $56.2M | $92.8M | 14.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | $4.2B | 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 recovery
Operating cash flow was materially higher than the preceding quarter, which drove the improvement in free cash flow. However, it remained below the level achieved one year earlier, and capital expenditure was elevated relative to both comparison periods.
The sequential rebound in operating cash flow provided the main upward force on free cash flow, but higher capital expenditure partially offset that gain.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin strengthened moderately compared with the preceding quarter but weakened noticeably relative to the same quarter a year earlier.
Relative to the prior quarter, free cash flow and operating cash flow both improved materially, while capital expenditure also rose. Compared with the year-ago quarter, operating cash flow and free cash flow were lower, and capital expenditure was higher.
Monitor the trend in capital expenditure as it increased substantially compared with both the prior quarter and the same quarter last year.