Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly from the prior quarter, driven by stronger cash from operations. Compared to the same quarter last year, free cash flow was slightly lower despite higher revenue, as capital expenditures increased.
- Revenue remained stable sequentially, but operating cash flow increased substantially, leading to a higher free cash flow margin. Capital expenditures were slightly lower than the prior quarter.
- Compared to the prior quarter, free cash flow was much higher, while versus the same quarter last year, free cash flow was slightly lower and the margin was narrower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$682.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$403.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$458.0M
Cash generated by operations before capital spending.
CapEx
$55.0M
Capital spending and related asset purchases.
FCF margin
23.3%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $1.6B | $23.0M | $64.0M | -$41.0M | -2.6% |
| 2023-06-30 | $1.6B | $229.0M | $41.0M | $188.0M | 11.4% |
| 2023-09-30 | $1.7B | $191.0M | $59.0M | $132.0M | 8.0% |
| 2023-12-31 | $1.7B | $458.0M | $55.0M | $403.0M | 23.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 170.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.1B | 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
Operating cash flow increased substantially from the prior quarter, driving a significant improvement in free cash flow.
Stronger cash conversion from operations boosted free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable sequentially, but operating cash flow increased substantially, leading to a higher free cash flow margin. Capital expenditures were slightly lower than the prior quarter.
Compared to the prior quarter, free cash flow was much higher, while versus the same quarter last year, free cash flow was slightly lower and the margin was narrower.
Monitor the trend in capital expenditures, which increased compared to the prior year, as it affects free cash flow generation.