Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially but higher year over year. Operating cash flow improved, capital expenditure declined, and free cash flow margin strengthened.
- The company converted revenue into free cash flow more efficiently than both the prior quarter and the same quarter last year, supported by improved operating cash flow and reduced capital spending.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow and free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow increased, and capital expenditure was lower, resulting in stronger free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$481.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$551.2M
Cash generated by operations before capital spending.
CapEx
$70.1M
Capital spending and related asset purchases.
FCF margin
36.0%
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 | $1.3B | $528.1M | $30.9M | $497.2M | 38.8% |
| 2023-03-31 | $1.3B | $677.5M | $30.3M | $647.2M | 51.3% |
| 2023-06-30 | $1.3B | $515.1M | $76.8M | $438.3M | 33.9% |
| 2023-09-30 | $1.3B | $551.2M | $70.1M | $481.1M | 36.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 149.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Growth
Operating cash flow rose both sequentially and year over year, while capital expenditure decreased, driving an improvement in free cash flow and margin.
Enhanced cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted revenue into free cash flow more efficiently than both the prior quarter and the same quarter last year, supported by improved operating cash flow and reduced capital spending.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow and free cash flow margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow increased, and capital expenditure was lower, resulting in stronger free cash flow.
Monitor the trajectory of deferred revenue, as it represents a significant portion of free cash flow and future revenue, per the filing.