Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Free cash flow declined from the prior quarter due to a combination of lower operating cash flow and higher capital expenditure, but was higher than a year ago.
- Operating cash flow and capital expenditure combined to determine free cash flow. The free cash flow margin, which measures the portion of revenue converted to free cash, weakened relative to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue was stable, operating cash flow was lower, capital expenditure was higher, and free cash flow and its margin were lower. Compared to the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was lower, free cash flow was higher, and free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$515.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$176.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$322.1M
Cash generated by operations before capital spending.
CapEx
$145.7M
Capital spending and related asset purchases.
FCF margin
13.3%
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 | $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% |
| 2023-12-31 | $1.3B | $322.1M | $145.7M | $176.4M | 13.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | 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 Decline
The reduction in operating cash flow from the prior quarter was the most significant factor in the decrease of free cash flow. This decline, combined with higher capital expenditure, pressured the free cash flow margin.
It led to a lower free cash flow and a weaker free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and capital expenditure combined to determine free cash flow. The free cash flow margin, which measures the portion of revenue converted to free cash, weakened relative to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue was stable, operating cash flow was lower, capital expenditure was higher, and free cash flow and its margin were lower. Compared to the same quarter last year, revenue was higher, operating cash flow was lower, capital expenditure was lower, free cash flow was higher, and free cash flow margin was lower.
The relationship between operating cash flow and capital expenditure, as it directly shapes free cash flow.