Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly from the prior quarter and from a year ago, driven by a large increase in operating cash flow. Free cash flow margin turned positive and reached a high level, reflecting strong conversion of revenue into cash after capital spending.
- Operating cash flow was substantially higher than both the previous quarter and the same quarter last year, while capital expenditure was lower. This resulted in free cash flow rising sharply and a free cash flow margin that improved from near zero a quarter ago and from a negative level a year earlier.
- Revenue was stable compared to the prior quarter but higher than a year ago. Operating cash flow, free cash flow, and free cash flow margin all improved markedly relative to both the preceding quarter and the same quarter last year.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$752.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$282.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$335.0M
Cash generated by operations before capital spending.
CapEx
$53.0M
Capital spending and related asset purchases.
FCF margin
10.0%
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 | $2.8B | $601.0M | $93.0M | $508.0M | 18.1% |
| 2023-03-31 | $2.7B | -$9.0M | $43.0M | -$52.0M | -1.9% |
| 2023-06-30 | $2.8B | $82.0M | $68.0M | $14.0M | 0.5% |
| 2023-09-30 | $2.8B | $335.0M | $53.0M | $282.0M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 190.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | 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 Surge
Operating cash flow reached a level far above both the immediately preceding quarter and the same quarter one year earlier. This was the strongest observable driver of the improvement in free cash flow.
The increase in operating cash flow directly supported a significant rise in free cash flow and a positive margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than both the previous quarter and the same quarter last year, while capital expenditure was lower. This resulted in free cash flow rising sharply and a free cash flow margin that improved from near zero a quarter ago and from a negative level a year earlier.
Revenue was stable compared to the prior quarter but higher than a year ago. Operating cash flow, free cash flow, and free cash flow margin all improved markedly relative to both the preceding quarter and the same quarter last year.
The magnitude of operating cash flow is a key item to monitor given its large swing from negative to positive year-over-year.