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 lower than the same quarter last year. Free cash flow margin weakened sequentially yet matched the year-ago level.
- Operating cash flow decreased from the prior quarter and from the year-ago quarter, while capital expenditure also declined. As a result, free cash flow was lower than both comparison periods, but the free cash flow margin remained the same as the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was unchanged but free cash flow margin declined. Relative to the same quarter one year earlier, revenue was lower, free cash flow was lower, yet the margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$815.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$883.7M
Cash generated by operations before capital spending.
CapEx
$68.0M
Capital spending and related asset purchases.
FCF margin
34.0%
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 | $3.0B | $688.3M | $93.6M | $594.6M | 19.9% |
| 2023-03-31 | $2.4B | $1.0B | $84.9M | $925.9M | 38.1% |
| 2023-06-30 | $2.4B | $959.1M | $78.7M | $880.4M | 37.4% |
| 2023-09-30 | $2.4B | $883.7M | $68.0M | $815.7M | 34.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.2B | 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 Pressure
Operating cash flow decreased from the prior quarter and the year-ago quarter, while revenue was stable or lower. This was the primary factor behind the sequential decline in free cash flow.
The decline in operating cash flow directly reduced free cash flow despite lower capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased from the prior quarter and from the year-ago quarter, while capital expenditure also declined. As a result, free cash flow was lower than both comparison periods, but the free cash flow margin remained the same as the year-ago quarter.
Compared to the immediately preceding quarter, revenue was unchanged but free cash flow margin declined. Relative to the same quarter one year earlier, revenue was lower, free cash flow was lower, yet the margin was stable.
Monitor the trajectory of operating cash flow, as it declined sequentially while revenue remained flat.