Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow with a margin above two hundred percent. Revenue was lower than the prior quarter but higher than the same quarter last year.
- Operating cash flow was substantially higher than revenue, driving a free cash flow margin above two hundred percent. Capital expenditure consumed a portion of operating cash flow, leaving free cash flow at a level similar to the prior year quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all were lower. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow was stable and margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$164.0M
Capital spending and related asset purchases.
FCF margin
207.3%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $567.0M | $622.0M | $223.0M | $399.0M | 70.4% |
| 2023-03-31 | $571.0M | $719.0M | $159.0M | $560.0M | 98.1% |
| 2023-06-30 | $552.0M | $1.4B | $140.0M | $1.3B | 234.4% |
| 2023-09-30 | $537.0M | $1.3B | $164.0M | $1.1B | 207.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 439.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 30.5% | 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 remained well above revenue and capital expenditure combined, sustaining a high free cash flow margin. This was the strongest observable driver of free cash flow in the quarter.
The large surplus of operating cash flow over capital expenditure provided a substantial free cash flow cushion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than revenue, driving a free cash flow margin above two hundred percent. Capital expenditure consumed a portion of operating cash flow, leaving free cash flow at a level similar to the prior year quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin all were lower. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while free cash flow was stable and margin was lower.
Monitor the relationship between operating cash flow and capital expenditure, as a shift in either could materially change free cash flow.