Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased compared to the prior quarter and the same quarter last year, driven by lower operating cash flow and higher capital expenditure. The free cash flow margin weakened versus both periods.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow improved from the prior quarter but was slightly below the year-ago level. Capital expenditure increased compared to both periods, resulting in free cash flow that was higher than the prior quarter but lower than a year ago.
- Compared to the prior quarter, free cash flow improved as operating cash flow rose more than capital expenditure increased. Versus the same quarter last year, free cash flow weakened due to lower operating cash flow and higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$757.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$881.0M
Cash generated by operations before capital spending.
CapEx
$124.0M
Capital spending and related asset purchases.
FCF margin
12.8%
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 | $5.9B | $441.0M | $140.0M | $301.0M | 5.1% |
| 2023-03-31 | $5.6B | $887.0M | $95.0M | $792.0M | 14.1% |
| 2023-06-30 | $6.1B | $651.0M | $99.0M | $552.0M | 9.1% |
| 2023-09-30 | $5.9B | $881.0M | $124.0M | $757.0M | 12.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | $661.0M | 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 vs. Capital Expenditure
Operating cash flow improved from the prior quarter but was slightly below the year-ago level, while capital expenditure increased compared to both periods. This divergence is the strongest observable driver of the free cash flow change.
The combination of lower operating cash flow and higher capital expenditure relative to a year ago reduced free cash flow.
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 higher than a year ago. Operating cash flow improved from the prior quarter but was slightly below the year-ago level. Capital expenditure increased compared to both periods, resulting in free cash flow that was higher than the prior quarter but lower than a year ago.
Compared to the prior quarter, free cash flow improved as operating cash flow rose more than capital expenditure increased. Versus the same quarter last year, free cash flow weakened due to lower operating cash flow and higher capital expenditure.
Monitor the trend in capital expenditure, which increased compared to both the prior quarter and the year-ago quarter.