Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened from the prior quarter but improved from the same quarter last year. Operating cash flow was lower sequentially while capital expenditure was higher, resulting in a lower free cash flow compared to the preceding quarter.
- Revenue was stable compared to the prior quarter, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure increased from the previous quarter, further reducing cash conversion efficiency.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a decline in operating cash flow and a rise in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$391.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$462.0M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
26.6%
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 | $1.3B | $377.0M | $79.0M | $298.0M | 23.1% |
| 2023-03-31 | $1.5B | $608.0M | $73.0M | $535.0M | 36.4% |
| 2023-06-30 | $1.5B | $604.0M | $54.0M | $550.0M | 36.8% |
| 2023-09-30 | $1.5B | $462.0M | $71.0M | $391.0M | 26.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.8B | 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 Decline
Operating cash flow was lower than the prior quarter, while revenue remained unchanged. This was the strongest observable factor behind the sequential drop in free cash flow.
The lower operating cash flow directly reduced free cash flow and margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure increased from the previous quarter, further reducing cash conversion efficiency.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by a decline in operating cash flow and a rise in capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow.
Monitor the trend in operating cash flow, as it declined sequentially despite stable revenue.