Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior year, but free cash flow margin improved slightly. Operating cash flow and free cash both weakened from the immediately preceding quarter, when operating cash flow was higher.
- Revenue was consistent with the prior year, while operating cash flow and free cash flow both increased modestly year over year, contributing to a slightly higher free cash flow margin. Capital expenditure was lower than a year earlier.
- Compared with the immediately preceding quarter, revenue was higher, but operating cash flow, free cash flow, and margin all weakened. Versus the same quarter a year ago, revenue was stable, while operating cash flow, free cash flow, and margin all improved.
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
$725.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$768.0M
Cash generated by operations before capital spending.
CapEx
$43.0M
Capital spending and related asset purchases.
FCF margin
29.8%
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 | $2.4B | $1.1B | $100.0M | $992.0M | 41.7% |
| 2023-03-31 | $2.5B | $653.0M | $21.0M | $632.0M | 25.6% |
| 2023-06-30 | $2.3B | $1.2B | $40.0M | $1.1B | 47.6% |
| 2023-09-30 | $2.4B | $768.0M | $43.0M | $725.0M | 29.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$22.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow improvement
Free cash flow and free cash flow margin increased compared with the same quarter last year, supported by higher operating cash flow and lower capital expenditure. Revenue was stable over the same period.
This resulted in a moderately stronger cash conversion profile relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was consistent with the prior year, while operating cash flow and free cash flow both increased modestly year over year, contributing to a slightly higher free cash flow margin. Capital expenditure was lower than a year earlier.
Compared with the immediately preceding quarter, revenue was higher, but operating cash flow, free cash flow, and margin all weakened. Versus the same quarter a year ago, revenue was stable, while operating cash flow, free cash flow, and margin all improved.
Monitor the change in operating cash flow, which decreased sharply from the prior quarter despite higher revenue.