Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and margin remained solid with stable operating cash flow. Revenue was slightly higher than the prior quarter, though free cash flow edged lower due to increased capital expenditure.
- Revenue conversion into operating cash flow was efficient, and after accounting for capital expenditure, free cash flow maintained a healthy margin. The company’s filing notes that a portion of cash is held for regulatory requirements and that it maintains access to credit facilities.
- Compared with the immediately preceding quarter, revenue was modestly higher while free cash flow and margin were slightly lower, as capital expenditure increased. Versus the same quarter one year ago, operating cash flow and free cash flow improved substantially, capital expenditure was lower, and the free-cash-flow margin turned positive from a deeply negative level.
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
$876.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$215.0M
Capital spending and related asset purchases.
FCF margin
35.2%
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 | $1.1B | $564.0M | $577.0M | 22.8% |
| 2023-03-31 | $2.4B | $632.0M | $193.0M | $439.0M | 18.3% |
| 2023-06-30 | $2.4B | $1.1B | $197.0M | $890.0M | 36.7% |
| 2023-09-30 | $2.5B | $1.1B | $215.0M | $876.0M | 35.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -190.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$13.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stable Operating Cash Flow
Operating cash flow remained at a high level compared with both the prior quarter and the year-ago quarter, providing a solid base for free cash flow even as capital expenditure increased.
Sustained strong operating cash flow supports ongoing investment and return to shareholders.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow was efficient, and after accounting for capital expenditure, free cash flow maintained a healthy margin. The company’s filing notes that a portion of cash is held for regulatory requirements and that it maintains access to credit facilities.
Compared with the immediately preceding quarter, revenue was modestly higher while free cash flow and margin were slightly lower, as capital expenditure increased. Versus the same quarter one year ago, operating cash flow and free cash flow improved substantially, capital expenditure was lower, and the free-cash-flow margin turned positive from a deeply negative level.
Monitor the trajectory of capital expenditure, which rose compared with the prior quarter and could pressure free cash flow if sustained.