Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but higher than the same quarter a year ago. Free cash flow improved from the prior quarter but was lower than the year-ago period, reflecting a mixed cash conversion performance.
- Operating cash flow increased from the prior quarter, while capital expenditure also rose, resulting in higher free cash flow and an improved free cash flow margin. Compared to the year-ago quarter, operating cash flow decreased despite higher revenue, leading to a lower free cash flow margin.
- Versus the prior quarter, free cash flow and margin improved. Versus the same quarter one year earlier, free cash flow and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$458.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$580.0M
Cash generated by operations before capital spending.
CapEx
$122.0M
Capital spending and related asset purchases.
FCF margin
12.0%
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 | $3.8B | $739.0M | $93.0M | $646.0M | 17.0% |
| 2023-03-31 | $3.4B | $71.0M | $62.0M | $9.0M | 0.3% |
| 2023-06-30 | $3.8B | $381.0M | $87.0M | $294.0M | 7.8% |
| 2023-09-30 | $3.8B | $580.0M | $122.0M | $458.0M | 12.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Quarter-over-quarter cash flow improvement
Operating cash flow rose compared to the immediate prior quarter, while capital expenditure increased moderately. This drove a higher free cash flow margin.
The stronger cash generation from operations in the current quarter enhanced free cash flow relative to the prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from the prior quarter, while capital expenditure also rose, resulting in higher free cash flow and an improved free cash flow margin. Compared to the year-ago quarter, operating cash flow decreased despite higher revenue, leading to a lower free cash flow margin.
Versus the prior quarter, free cash flow and margin improved. Versus the same quarter one year earlier, free cash flow and margin weakened.
Monitor the trajectory of operating cash flow, as it declined year over year despite higher revenue, and the impact of changes in accounts payable as noted in the filing.