Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than a year ago. Free cash flow margin weakened sequentially but improved compared to the same quarter last year.
- Operating cash flow was lower than the prior quarter and higher than a year ago. Capital expenditure increased sequentially and year-over-year, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year. The free cash flow margin followed the same pattern.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$292.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$548.4M
Cash generated by operations before capital spending.
CapEx
$256.3M
Capital spending and related asset purchases.
FCF margin
16.8%
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 | $1.7B | $437.9M | $139.2M | $298.7M | 18.0% |
| 2023-03-31 | $1.7B | $371.4M | $194.1M | $177.3M | 10.5% |
| 2023-06-30 | $1.8B | $665.7M | $178.3M | $487.4M | 27.8% |
| 2023-09-30 | $1.7B | $548.4M | $256.3M | $292.1M | 16.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 70.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 were both higher compared to the same quarter one year earlier, driven by higher operating cash flow despite increased capital expenditure.
The year-over-year increase in free cash flow strengthened the company's cash generation relative to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and higher than a year ago. Capital expenditure increased sequentially and year-over-year, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year. The free cash flow margin followed the same pattern.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
Monitor the trend in capital expenditure, which increased both sequentially and year-over-year.