Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, with a significant improvement in operating cash flow. Revenue remained stable versus the prior quarter but declined from a year ago.
- Operating cash flow improved substantially, driving free cash flow positive despite lower capital spending. The free cash flow margin rose from negative levels in both the prior quarter and the year-ago quarter.
- Compared to the preceding quarter, free cash flow and operating cash flow both improved strongly. Versus the same quarter last year, free cash flow also turned positive while revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$514.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$205.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$357.0M
Cash generated by operations before capital spending.
CapEx
$152.0M
Capital spending and related asset purchases.
FCF margin
3.0%
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 | $7.8B | $359.0M | $159.0M | $200.0M | 2.6% |
| 2023-03-31 | $7.0B | $450.0M | $180.0M | $270.0M | 3.9% |
| 2023-06-30 | $6.9B | $6.0M | $167.0M | -$161.0M | -2.3% |
| 2023-09-29 | $6.9B | $357.0M | $152.0M | $205.0M | 3.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$512.0M | 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 Recovery
Operating cash flow rose substantially from both the prior quarter and the year-ago quarter, more than offsetting a slight reduction in capital expenditure. This was the strongest observable driver of the positive free cash flow.
The cash flow profile shifted from cash usage to cash generation, improving the company's financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved substantially, driving free cash flow positive despite lower capital spending. The free cash flow margin rose from negative levels in both the prior quarter and the year-ago quarter.
Compared to the preceding quarter, free cash flow and operating cash flow both improved strongly. Versus the same quarter last year, free cash flow also turned positive while revenue was lower.
Monitor whether operating cash flow can sustain this improved level, as it was the primary driver of the swing to positive free cash flow.