Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive year-over-year but weakened sharply from the prior quarter. The improvement from a year ago was driven by higher operating cash flow, while the sequential decline reflected lower cash generation despite stable revenue.
- Revenue was stable compared to the prior quarter, but operating cash flow decreased, leading to a lower free cash flow and margin. Capital expenditure remained unchanged.
- Sequentially, free cash flow and margin weakened significantly. Year-over-year, free cash flow improved from negative to positive, and margin turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$519.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$58.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$1.2B
Capital spending and related asset purchases.
FCF margin
1.0%
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 | $1.1B | $1.0B | $22.0M | 0.4% |
| 2023-03-31 | $5.1B | $1.1B | $1.1B | -$71.0M | -1.4% |
| 2023-06-30 | $5.9B | $1.7B | $1.2B | $510.0M | 8.6% |
| 2023-09-30 | $5.9B | $1.2B | $1.2B | $58.0M | 1.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 6.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 20.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | 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
Operating cash flow decreased sequentially while revenue held steady, compressing free cash flow.
The lower operating cash flow reduced free cash flow to near break-even levels.
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, but operating cash flow decreased, leading to a lower free cash flow and margin. Capital expenditure remained unchanged.
Sequentially, free cash flow and margin weakened significantly. Year-over-year, free cash flow improved from negative to positive, and margin turned positive.
Monitor operating cash flow trends as they are the primary driver of free cash flow changes.