Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than a year ago. Free cash flow improved sequentially but was slightly lower than the same quarter last year, with the margin weakening modestly year over year.
- Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure increased sequentially and year over year. The resulting free cash flow improved from the prior quarter but was slightly lower than a year ago, with the free cash flow margin weakening modestly year over year.
- Compared to the prior quarter, revenue was stable, operating cash flow and free cash flow were higher, and the free cash flow margin improved. Compared to the same quarter a year ago, revenue was higher, operating cash flow was higher, but free cash flow was slightly lower and the margin weakened modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$913.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$228.0M
Capital spending and related asset purchases.
FCF margin
15.5%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $5.4B | $1.2B | $209.0M | $977.0M | 18.1% |
| 2023-03-31 | $5.5B | $335.0M | $126.0M | $209.0M | 3.8% |
| 2023-06-30 | $5.9B | $850.0M | $160.0M | $690.0M | 11.8% |
| 2023-09-30 | $5.9B | $1.1B | $228.0M | $913.0M | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.8B | 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 was higher than both the prior quarter and the year-ago quarter, providing the primary support for free cash flow generation.
This stronger operating cash flow drove the sequential improvement in free cash flow despite higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the year-ago quarter, while capital expenditure increased sequentially and year over year. The resulting free cash flow improved from the prior quarter but was slightly lower than a year ago, with the free cash flow margin weakening modestly year over year.
Compared to the prior quarter, revenue was stable, operating cash flow and free cash flow were higher, and the free cash flow margin improved. Compared to the same quarter a year ago, revenue was higher, operating cash flow was higher, but free cash flow was slightly lower and the margin weakened modestly.
Monitor the trend in capital expenditure, which increased both sequentially and year over year, as it directly impacts free cash flow conversion.