Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved significantly as operating cash flow increased while capital expenditure declined. Revenue was stable versus the prior quarter and higher than the same quarter a year earlier.
- Revenue was stable compared to the prior quarter, while operating cash flow rose and capital expenditure decreased, resulting in a higher free cash flow and a stronger free cash flow margin.
- Compared to the prior quarter, free cash flow and margin both improved, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter a year ago, free cash flow and margin were also higher, 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
$508.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$247.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$381.7M
Cash generated by operations before capital spending.
CapEx
$134.3M
Capital spending and related asset purchases.
FCF margin
18.8%
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 | $1.2B | $325.4M | $156.1M | $169.3M | 14.1% |
| 2023-03-31 | $1.3B | $150.9M | $158.3M | -$7.4M | -0.6% |
| 2023-06-30 | $1.3B | $262.1M | $163.0M | $99.1M | 7.5% |
| 2023-09-30 | $1.3B | $381.7M | $134.3M | $247.4M | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 152.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.6B | 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 improvement
Operating cash flow rose from the prior quarter and from the same quarter a year ago, while capital expenditure declined relative to both periods.
The combination of higher operating cash flow and lower capital expenditure led to a substantial increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, while operating cash flow rose and capital expenditure decreased, resulting in a higher free cash flow and a stronger free cash flow margin.
Compared to the prior quarter, free cash flow and margin both improved, driven by higher operating cash flow and lower capital expenditure. Versus the same quarter a year ago, free cash flow and margin were also higher, with operating cash flow higher and capital expenditure lower.
Monitor whether the current level of operating cash flow can be sustained given that revenue was unchanged from the prior quarter.