Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially driven by stronger operating cash flow, though the margin edged lower compared to the prior year period as capital expenditure rose.
- Revenue was stable sequentially and higher year over year, while operating cash flow increased in both comparisons. Capital expenditure grew as well, resulting in free cash flow that was higher sequentially but slightly lower as a share of revenue year over year.
- Compared to the preceding quarter, free cash flow improved significantly as operating cash flow strengthened. Versus the same quarter one year earlier, free cash flow was higher but its margin weakened due to increased capital spending.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$378.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$391.4M
Cash generated by operations before capital spending.
CapEx
$13.1M
Capital spending and related asset purchases.
FCF margin
26.7%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $1.3B | $477.3M | $8.2M | $469.1M | 35.5% |
| 2023-06-30 | $1.3B | $326.8M | $17.4M | $309.4M | 23.3% |
| 2023-09-30 | $1.4B | $286.9M | $10.8M | $276.1M | 19.9% |
| 2023-12-31 | $1.4B | $391.4M | $13.1M | $378.3M | 26.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 137.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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.
Rising Capital Expenditure
Capital expenditure increased both sequentially and year over year, contributing to a free cash flow margin that, while still robust, was slightly lower than the prior year period.
If capital spending continues to climb while operating cash flow growth moderates, free cash flow margin may face further pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year over year, while operating cash flow increased in both comparisons. Capital expenditure grew as well, resulting in free cash flow that was higher sequentially but slightly lower as a share of revenue year over year.
Compared to the preceding quarter, free cash flow improved significantly as operating cash flow strengthened. Versus the same quarter one year earlier, free cash flow was higher but its margin weakened due to increased capital spending.
Monitor the trend in capital expenditure, as its increase moderated free cash flow margin year over year.