Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly in the current quarter compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Revenue was stable sequentially and higher than the year-ago period.
- Operating cash flow rose compared to both prior periods, while capital expenditure declined. As a result, free cash flow and free cash flow margin improved, reflecting stronger cash conversion from revenue.
- Compared to the prior quarter, free cash flow and margin increased substantially, supported by a notable rise in operating cash flow and a reduction in capital expenditure. Versus the year-ago quarter, all metrics improved, with operating cash flow and free cash flow both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$777.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$862.0M
Cash generated by operations before capital spending.
CapEx
$85.0M
Capital spending and related asset purchases.
FCF margin
31.1%
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 | $2.5B | $684.0M | $153.0M | $531.0M | 21.2% |
| 2023-03-31 | $2.5B | $841.0M | $132.0M | $709.0M | 28.2% |
| 2023-06-30 | $2.5B | $601.0M | $113.0M | $488.0M | 19.2% |
| 2023-09-30 | $2.5B | $862.0M | $85.0M | $777.0M | 31.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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 Strength
Operating cash flow increased compared to both the prior quarter and the same quarter last year, supported by working capital movements and changes in non-cash items as noted in the filing.
This was the primary factor behind the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose compared to both prior periods, while capital expenditure declined. As a result, free cash flow and free cash flow margin improved, reflecting stronger cash conversion from revenue.
Compared to the prior quarter, free cash flow and margin increased substantially, supported by a notable rise in operating cash flow and a reduction in capital expenditure. Versus the year-ago quarter, all metrics improved, with operating cash flow and free cash flow both higher.
Monitor capital expenditure trends, as the current quarter's lower spending may not be sustained.