Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the prior quarter, driven by higher operating cash flow. The free cash flow margin also strengthened versus the preceding period.
- Revenue was slightly lower than the prior quarter, but operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, while revenue was slightly lower. Compared to the same quarter one year earlier, free cash flow was higher, and capital expenditure was higher; revenue data for the year-ago quarter is not available.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$856.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$982.0M
Cash generated by operations before capital spending.
CapEx
$126.0M
Capital spending and related asset purchases.
FCF margin
21.2%
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 | n/a | $811.0M | $156.0M | $655.0M | n/a |
| 2023-03-31 | $4.0B | $728.0M | $113.0M | $615.0M | 15.3% |
| 2023-06-30 | $4.1B | $790.0M | $85.0M | $705.0M | 17.3% |
| 2023-09-30 | $4.0B | $982.0M | $126.0M | $856.0M | 21.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.1B | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, which was the primary factor behind the improvement in free cash flow.
Higher operating cash flow directly supported a stronger free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter, but operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, while revenue was slightly lower. Compared to the same quarter one year earlier, free cash flow was higher, and capital expenditure was higher; revenue data for the year-ago quarter is not available.
Monitor the trend in capital expenditure, as it was higher in the current quarter compared to both the prior quarter and the year-ago quarter.