Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow improved significantly compared to the preceding quarter, which had a negative free cash flow. The free cash flow margin was also higher than the same quarter one year earlier.
- Revenue remained stable while operating cash flow turned strongly positive, leading to a large free cash flow. The free cash flow margin was substantially higher than both prior periods due to the combination of stable revenue and elevated operating cash flow.
- Compared to the preceding quarter, operating cash flow and free cash flow shifted from negative to positive, a marked improvement. Versus the same quarter one year earlier, operating cash flow, free cash flow, and the free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$52.0M
Capital spending and related asset purchases.
FCF margin
489.7%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $6.0B | $1.1B | $53.0M | $1.0B | 17.1% |
| 2023-03-31 | $338.0M | $871.0M | $49.0M | $822.0M | 243.2% |
| 2023-06-30 | $352.0M | -$49.0M | $50.0M | -$99.0M | -28.1% |
| 2023-09-30 | $351.0M | $1.8B | $52.0M | $1.7B | 489.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 264.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.8% | 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 Turnaround
The most observable driver was the shift in operating cash flow from a negative amount in the preceding quarter to a large positive amount in the current quarter. This directly drove the free cash flow improvement.
The turnaround in operating cash flow was the primary reason free cash flow and its margin improved significantly versus both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable while operating cash flow turned strongly positive, leading to a large free cash flow. The free cash flow margin was substantially higher than both prior periods due to the combination of stable revenue and elevated operating cash flow.
Compared to the preceding quarter, operating cash flow and free cash flow shifted from negative to positive, a marked improvement. Versus the same quarter one year earlier, operating cash flow, free cash flow, and the free cash flow margin were all higher.
Monitor whether operating cash flow can sustain its positive level given the prior quarter's negative result.