Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply from the preceding quarter, turning free cash flow positive despite higher capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin were lower as capital spending increased more than operating cash flow.
- Revenue remained stable compared to the preceding quarter, while operating cash flow rose substantially, resulting in a positive free cash flow margin. Capital expenditure was slightly higher than the prior quarter but significantly higher than a year ago.
- Relative to the preceding quarter, free cash flow improved from negative to positive. Versus the same quarter one year earlier, free cash flow and margin weakened due to a larger increase in capital expenditure relative to operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$225.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$70.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$447.2M
Cash generated by operations before capital spending.
CapEx
$376.9M
Capital spending and related asset purchases.
FCF margin
4.9%
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 | $1.3B | $128.8M | $265.9M | -$137.1M | -10.4% |
| 2023-06-30 | $1.4B | $317.3M | $334.9M | -$17.6M | -1.3% |
| 2023-09-30 | $1.4B | $220.3M | $361.5M | -$141.3M | -10.2% |
| 2023-12-31 | $1.4B | $447.2M | $376.9M | $70.3M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 240.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 26.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.7B | 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 recovery
Operating cash flow increased substantially from the preceding quarter, driving free cash flow into positive territory. This improvement occurred even as revenue remained stable.
The higher operating cash flow was the primary factor behind the sequential turnaround in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable compared to the preceding quarter, while operating cash flow rose substantially, resulting in a positive free cash flow margin. Capital expenditure was slightly higher than the prior quarter but significantly higher than a year ago.
Relative to the preceding quarter, free cash flow improved from negative to positive. Versus the same quarter one year earlier, free cash flow and margin weakened due to a larger increase in capital expenditure relative to operating cash flow.
Monitor the trend in capital expenditure, which rose compared to both the prior quarter and the year-ago period.