Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow improved significantly compared to the same quarter last year, driven by higher operating cash flow. However, free cash flow margin weakened relative to the preceding quarter due to a decline in operating cash flow.
- Revenue was slightly higher than both the preceding quarter and the same quarter last year. Operating cash flow increased substantially from a year ago but decreased from the prior quarter. Capital expenditure was higher than both comparison periods. As a result, free cash flow and free cash flow margin were higher year-over-year but lower sequentially.
- Compared to the preceding quarter, free cash flow margin weakened as operating cash flow declined while capital expenditure rose. Compared to the same quarter one year earlier, free cash flow margin improved markedly, driven by a much higher operating cash flow despite a larger capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$649.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$191.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$231.0M
Cash generated by operations before capital spending.
CapEx
$40.0M
Capital spending and related asset purchases.
FCF margin
6.0%
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 | $3.4B | $254.0M | $29.0M | $225.0M | 6.7% |
| 2023-04-01 | $3.1B | $27.0M | $31.0M | -$4.0M | -0.1% |
| 2023-07-01 | $3.1B | $274.0M | $37.0M | $237.0M | 7.6% |
| 2023-09-30 | $3.2B | $231.0M | $40.0M | $191.0M | 6.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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.
Operating cash flow improvement year-over-year
Operating cash flow was substantially higher than the same quarter last year, more than offsetting the increase in capital expenditure and leading to higher free cash flow.
This drove a stronger free cash flow margin 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 slightly higher than both the preceding quarter and the same quarter last year. Operating cash flow increased substantially from a year ago but decreased from the prior quarter. Capital expenditure was higher than both comparison periods. As a result, free cash flow and free cash flow margin were higher year-over-year but lower sequentially.
Compared to the preceding quarter, free cash flow margin weakened as operating cash flow declined while capital expenditure rose. Compared to the same quarter one year earlier, free cash flow margin improved markedly, driven by a much higher operating cash flow despite a larger capital expenditure.
Monitor working capital requirements, which the filing notes typically increase from the end of the third quarter through the first quarter of the following year.