Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after a negative prior quarter, though it remained below the year-ago level. Revenue was stable across all periods.
- Revenue was unchanged. Operating cash flow improved significantly from the prior quarter, leading to positive free cash flow and a positive margin, compared to a negative margin in the prior quarter. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter.
- Compared to the prior quarter, free cash flow improved markedly from negative to positive. Compared to the same quarter one year earlier, free cash flow was lower, driven by lower operating cash flow and slightly lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$755.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$828.0M
Cash generated by operations before capital spending.
CapEx
$73.0M
Capital spending and related asset purchases.
FCF margin
15.4%
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 | $4.8B | $702.0M | $90.0M | $612.0M | 12.6% |
| 2023-03-31 | $4.8B | $729.0M | $98.0M | $631.0M | 13.1% |
| 2023-06-30 | $4.9B | $36.0M | $68.0M | -$32.0M | -0.7% |
| 2023-09-30 | $4.9B | $828.0M | $73.0M | $755.0M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 143.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 recovery
Operating cash flow increased substantially from the prior quarter, which was the primary factor behind the swing from negative to positive free cash flow.
This recovery enabled the company to generate positive free cash flow after a negative quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged. Operating cash flow improved significantly from the prior quarter, leading to positive free cash flow and a positive margin, compared to a negative margin in the prior quarter. Capital expenditure was slightly higher than the prior quarter but lower than the year-ago quarter.
Compared to the prior quarter, free cash flow improved markedly from negative to positive. Compared to the same quarter one year earlier, free cash flow was lower, driven by lower operating cash flow and slightly lower capital expenditure.
Monitor the sustainability of operating cash flow given the year-over-year decline and the impact of income tax payments noted in the filing context for the nine-month period.