Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the latest quarter, free cash flow was higher than the prior quarter but lower than the same quarter one year earlier. The free cash flow margin improved sequentially but weakened against the prior year.
- Revenue grew compared to both the prior quarter and the year-ago quarter, while operating cash flow rose from the prior quarter but fell from the year-ago period, resulting in mixed cash conversion.
- Sequentially, free cash flow and margin were higher, supported by increased revenue and operating cash flow. Compared to the same quarter last year, free cash flow and margin were lower despite higher revenue, as operating cash flow declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$883.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$969.0M
Cash generated by operations before capital spending.
CapEx
$86.0M
Capital spending and related asset purchases.
FCF margin
33.1%
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 | $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% |
| 2023-12-31 | $2.7B | $969.0M | $86.0M | $883.0M | 33.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 236.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$21.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth
Revenue increased from both the prior quarter and the year-ago quarter, supporting higher operating cash flow and free cash flow sequentially.
The rise in revenue was the primary factor behind the sequential improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew compared to both the prior quarter and the year-ago quarter, while operating cash flow rose from the prior quarter but fell from the year-ago period, resulting in mixed cash conversion.
Sequentially, free cash flow and margin were higher, supported by increased revenue and operating cash flow. Compared to the same quarter last year, free cash flow and margin were lower despite higher revenue, as operating cash flow declined.
Monitor operating cash flow trends relative to revenue, as the year-over-year decline in cash conversion signals a potential shift in cash generation efficiency.