Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. Capital expenditure increased but was more than offset by the operating cash flow gain, and the company stated it expects to fund investments and shareholder returns through operating cash flows.
- Revenue was stable sequentially and higher year over year. Operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin despite a rise in capital expenditure.
- Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow increasing while capital expenditure also rose. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, though capital expenditure was also higher.
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
$398.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$523.0M
Cash generated by operations before capital spending.
CapEx
$125.0M
Capital spending and related asset purchases.
FCF margin
9.5%
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 | $3.8B | $360.0M | $48.0M | $312.0M | 8.2% |
| 2023-03-31 | $4.1B | $454.0M | $98.0M | $356.0M | 8.7% |
| 2023-06-30 | $4.2B | $450.0M | $95.0M | $355.0M | 8.5% |
| 2023-09-30 | $4.2B | $523.0M | $125.0M | $398.0M | 9.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | 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 strength
Operating cash flow increased both sequentially and year over year, providing the primary lift to free cash flow despite higher capital spending.
The improvement in operating cash flow was the strongest observable driver of the quarter's free cash flow growth.
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. Operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin despite a rise in capital expenditure.
Compared to the immediately preceding quarter, free cash flow and margin were higher, with operating cash flow increasing while capital expenditure also rose. Versus the same quarter one year earlier, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher, though capital expenditure was also higher.
Monitor the trend in capital expenditure, which increased significantly from the year-ago level, to assess its ongoing impact on free cash flow generation.