Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased sequentially but fell compared to the prior year. Free cash flow and its margin declined from the previous quarter but improved relative to the same quarter last year.
- Operating cash flow decreased more than revenue sequentially, leading to a lower free cash flow margin. Capital expenditure was stable, but the decline in operating cash flow drove the weaker conversion.
- Compared to the prior quarter, all cash flow metrics weakened, despite slightly higher revenue. Versus the year-ago quarter, free cash flow margin improved, though revenue was lower.
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
$545.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$622.2M
Cash generated by operations before capital spending.
CapEx
$76.8M
Capital spending and related asset purchases.
FCF margin
21.9%
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 | $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% |
| 2023-12-31 | $2.5B | $622.2M | $76.8M | $545.4M | 21.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.5B | 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 Decline
Operating cash flow fell sharply from the previous quarter, while revenue only modestly increased, indicating weakened cash generation.
If sustained, lower operating cash flow may pressure free cash flow levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased more than revenue sequentially, leading to a lower free cash flow margin. Capital expenditure was stable, but the decline in operating cash flow drove the weaker conversion.
Compared to the prior quarter, all cash flow metrics weakened, despite slightly higher revenue. Versus the year-ago quarter, free cash flow margin improved, though revenue was lower.
Monitor operating cash flow trends, as the sequential decline was substantial.