Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a significant increase in operating cash flow. Compared to the same quarter last year, free cash flow was lower despite a smaller decline in revenue.
- Revenue was lower than the prior quarter but operating cash flow rose substantially, resulting in a higher free cash flow and an improved free cash flow margin. Capital expenditure increased modestly but remained a small portion of operating cash flow.
- Compared to the prior quarter, free cash flow and free cash flow margin both improved. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, while revenue also declined.
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
$994.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$43.0M
Capital spending and related asset purchases.
FCF margin
275.3%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $375.0M | $718.0M | $24.0M | $694.0M | 185.1% |
| 2023-06-30 | $348.0M | $582.0M | $50.0M | $532.0M | 152.9% |
| 2023-09-30 | $347.0M | $566.0M | $25.0M | $541.0M | 155.9% |
| 2023-12-31 | $361.0M | $1.0B | $43.0M | $994.0M | 275.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1529.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.9% | 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.
Operating Cash Flow Strength
Operating cash flow rose substantially from the prior quarter, more than offsetting a slight increase in capital expenditure and leading to a higher free cash flow.
The improvement in operating cash flow was the strongest observable driver of the quarter's free cash flow increase.
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 but operating cash flow rose substantially, resulting in a higher free cash flow and an improved free cash flow margin. Capital expenditure increased modestly but remained a small portion of operating cash flow.
Compared to the prior quarter, free cash flow and free cash flow margin both improved. Versus the same quarter one year earlier, free cash flow and free cash flow margin were lower, while revenue also declined.
Monitor the trajectory of operating cash flow, as its quarter-over-quarter increase was the primary factor behind the free cash flow improvement.