Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. However, operating cash flow, free cash flow, and free cash flow margin all declined, indicating weaker cash conversion.
- Revenue rose, but operating cash flow fell, while capital expenditure was higher than both comparable periods. The combination pulled free cash flow sharply lower and compressed the free cash flow margin.
- Compared with the prior quarter, revenue was higher but operating cash flow, free cash flow, and margin were lower. Versus the same quarter one year earlier, revenue was higher while all cash flow metrics and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$170.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$275.5M
Cash generated by operations before capital spending.
CapEx
$104.9M
Capital spending and related asset purchases.
FCF margin
5.6%
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 | $2.9B | $653.6M | $99.1M | $554.5M | 18.9% |
| 2023-03-31 | $3.0B | $121.2M | $78.2M | $43.0M | 1.4% |
| 2023-06-30 | $3.0B | $351.4M | $103.3M | $248.1M | 8.2% |
| 2023-09-30 | $3.1B | $275.5M | $104.9M | $170.6M | 5.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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.
Decline in Operating Cash Flow
Revenue increased, but operating cash flow decreased, leading to lower free cash flow and margin. Capital expenditure was slightly higher than the prior quarter and notably higher than the year-ago quarter.
Revenue growth did not translate into improved cash generation, signaling a need to monitor cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, but operating cash flow fell, while capital expenditure was higher than both comparable periods. The combination pulled free cash flow sharply lower and compressed the free cash flow margin.
Compared with the prior quarter, revenue was higher but operating cash flow, free cash flow, and margin were lower. Versus the same quarter one year earlier, revenue was higher while all cash flow metrics and margin were lower.
Monitor the trend in operating cash flow relative to revenue, as it weakened despite higher top-line growth.