Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter last year but decreased from the preceding quarter. Operating cash flow was lower sequentially despite stable revenue, while year-over-year gains in revenue and operating cash flow supported the improvement.
- Revenue was stable sequentially, but operating cash flow was lower, resulting in a lower free cash flow margin. Compared to the prior-year period, both revenue and operating cash flow were higher, leading to an improved free cash flow margin.
- Sequentially, free cash flow and margin weakened due to lower operating cash flow. Year-over-year, free cash flow and margin strengthened as revenue and operating cash flow increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$257.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$426.8M
Cash generated by operations before capital spending.
CapEx
$169.8M
Capital spending and related asset purchases.
FCF margin
10.4%
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 | $2.3B | $709.5M | $152.3M | $557.2M | 24.7% |
| 2023-03-31 | $2.3B | $599.5M | $162.2M | $437.3M | 19.1% |
| 2023-06-30 | $2.5B | $565.0M | $168.8M | $396.1M | 16.2% |
| 2023-09-30 | $2.5B | $426.8M | $169.8M | $257.0M | 10.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$14.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow improvement
Free cash flow was higher than the same quarter last year, supported by increases in revenue and operating cash flow. This represents a year-over-year strengthening in cash generation.
The year-over-year increase in free cash flow indicates stronger cash conversion compared to the prior-year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, but operating cash flow was lower, resulting in a lower free cash flow margin. Compared to the prior-year period, both revenue and operating cash flow were higher, leading to an improved free cash flow margin.
Sequentially, free cash flow and margin weakened due to lower operating cash flow. Year-over-year, free cash flow and margin strengthened as revenue and operating cash flow increased.
Monitor the trend in operating cash flow, as its sequential decline drove the weakening in free cash flow despite stable revenue.