Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the same quarter last year but lower than the prior quarter. Free cash flow and margin improved significantly from a year ago, while the sequential comparison showed a mixed picture with a slight decline in free cash flow but a higher margin.
- Operating cash flow increased relative to revenue, while capital expenditure was lower than the year-ago level, resulting in higher free cash flow and an improved free cash flow margin. Sequentially, a higher capital expenditure partially offset the operating cash flow improvement, leading to a slightly lower free cash flow but a higher margin.
- Compared to the prior quarter, revenue was lower, operating cash flow was slightly higher, capital expenditure was higher, and free cash flow was slightly lower, though the free cash flow margin improved. Compared to the same quarter a year ago, revenue was stable, operating cash flow and free cash flow were higher, capital expenditure was lower, and the margin was significantly improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$423.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$485.0M
Cash generated by operations before capital spending.
CapEx
$62.0M
Capital spending and related asset purchases.
FCF margin
22.5%
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 | $2.0B | $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% |
| 2023-12-31 | $1.9B | $485.0M | $62.0M | $423.0M | 22.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 221.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.3B | 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 rose compared to the same quarter last year, supporting a higher free cash flow despite a slightly higher capital expenditure. The improvement in operating cash flow was the primary observable factor behind the year-over-year free cash flow growth.
The higher operating cash flow drove a notable improvement in free cash flow margin versus the prior year.
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 was lower than the year-ago level, resulting in higher free cash flow and an improved free cash flow margin. Sequentially, a higher capital expenditure partially offset the operating cash flow improvement, leading to a slightly lower free cash flow but a higher margin.
Compared to the prior quarter, revenue was lower, operating cash flow was slightly higher, capital expenditure was higher, and free cash flow was slightly lower, though the free cash flow margin improved. Compared to the same quarter a year ago, revenue was stable, operating cash flow and free cash flow were higher, capital expenditure was lower, and the margin was significantly improved.
Monitor capital expenditure trends given the sequential increase and the year-over-year decrease.