Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. Revenue was lower in both comparisons.
- Operating cash flow increased relative to revenue, while capital expenditure decreased, leading to a higher free cash flow margin. This indicates improved cash conversion efficiency.
- Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and margin were higher. Versus the same quarter a year ago, the same pattern held: lower revenue with higher cash flow metrics.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$980.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$432.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$480.0M
Cash generated by operations before capital spending.
CapEx
$48.0M
Capital spending and related asset purchases.
FCF margin
21.8%
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 | $1.9B | $320.0M | $87.0M | $233.0M | 12.1% |
| 2023-03-31 | $2.0B | $33.0M | $61.0M | -$28.0M | -1.4% |
| 2023-06-30 | $2.1B | $415.0M | $72.0M | $343.0M | 16.1% |
| 2023-09-30 | $2.0B | $480.0M | $48.0M | $432.0M | 21.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 173.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Cash Flow Generation
Operating cash flow rose despite a decline in revenue, and capital spending was reduced, resulting in a higher free cash flow margin.
This improvement strengthened the company's cash position and liquidity, as reflected in the increased cash balance and current ratio.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to revenue, while capital expenditure decreased, leading to a higher free cash flow margin. This indicates improved cash conversion efficiency.
Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and margin were higher. Versus the same quarter a year ago, the same pattern held: lower revenue with higher cash flow metrics.
Monitor capital expenditure levels, as they decreased notably from both the prior quarter and the year-ago period.