Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all rose compared to the preceding quarter and the same quarter a year earlier. The free cash flow margin improved versus both prior periods, reflecting higher cash generation relative to revenue.
- Operating cash flow as a proportion of revenue was higher than in both the prior quarter and the year-ago quarter, indicating improved cash conversion. Capital expenditure was lower than the year-ago quarter, contributing to the increase in free cash flow and margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, each metric was also higher, with capital expenditure lower than the year-ago level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$417.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$465.9M
Cash generated by operations before capital spending.
CapEx
$48.6M
Capital spending and related asset purchases.
FCF margin
28.1%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $1.1B | $279.2M | $46.8M | $232.4M | 20.3% |
| 2023-07-01 | $1.3B | $273.7M | $52.5M | $221.2M | 16.7% |
| 2023-09-30 | $1.3B | $357.4M | $45.5M | $311.9M | 24.4% |
| 2023-12-30 | $1.5B | $465.9M | $48.6M | $417.3M | 28.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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.
Strong operating cash flow
Operating cash flow rose from both the prior quarter and the year-ago quarter, driving free cash flow higher even as capital expenditure remained relatively stable. This was the primary observable factor behind the improved free cash flow margin.
Higher operating cash flow was the strongest observable driver of the quarter's free cash flow increase and margin improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than in both the prior quarter and the year-ago quarter, indicating improved cash conversion. Capital expenditure was lower than the year-ago quarter, contributing to the increase in free cash flow and margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Compared to the same quarter one year earlier, each metric was also higher, with capital expenditure lower than the year-ago level.
Monitor the trend in capital expenditure relative to operating cash flow, as lower spending significantly supported free cash flow this quarter.