Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow improved substantially compared to both the prior quarter and the same quarter last year. The improvement was driven by a higher operating cash flow conversion from revenue despite lower revenue.
- Revenue was lower than the prior quarter and a year ago, but operating cash flow was significantly higher, leading to a higher free cash flow margin. Capital expenditure was slightly lower than the prior quarter and slightly lower than the year-ago period.
- Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter last year, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$453.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$320.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$420.0M
Cash generated by operations before capital spending.
CapEx
$100.0M
Capital spending and related asset purchases.
FCF margin
11.3%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $2.8B | $208.0M | $160.0M | $48.0M | 1.7% |
| 2023-03-31 | $3.0B | $127.0M | $175.0M | -$48.0M | -1.6% |
| 2023-06-30 | $2.9B | $248.0M | $115.0M | $133.0M | 4.5% |
| 2023-09-30 | $2.8B | $420.0M | $100.0M | $320.0M | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1280.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.7B | 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 significantly from both the prior quarter and the year-ago quarter, while revenue decreased. This higher cash conversion from operations was the primary factor behind the improved free cash flow margin.
The stronger operating cash flow drove the improvement in free cash flow and margin without relying on lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter and a year ago, but operating cash flow was significantly higher, leading to a higher free cash flow margin. Capital expenditure was slightly lower than the prior quarter and slightly lower than the year-ago period.
Compared to the prior quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher. Compared to the same quarter last year, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher.
Monitor the revenue level as it declined from both comparison periods, which could affect the sustainability of cash flow generation.