Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sequentially and year-over-year, driven by higher operating cash flow relative to revenue. Capital expenditure was slightly higher than the prior quarter but lower than the same quarter last year.
- Revenue was stable sequentially while operating cash flow increased, resulting in higher free cash flow and an improved margin. Compared to the same quarter last year, revenue grew and operating cash flow rose more sharply, further lifting free cash flow and margin.
- Sequentially, free cash flow and margin improved as operating cash flow increased while revenue held steady. Year-over-year, all key metrics strengthened: revenue, operating cash flow, free cash flow, and margin were all higher, with capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$404.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$477.0M
Cash generated by operations before capital spending.
CapEx
$73.0M
Capital spending and related asset purchases.
FCF margin
27.3%
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 | $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% |
| 2023-12-31 | $1.5B | $477.0M | $73.0M | $404.0M | 27.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 Growth
Operating cash flow increased both sequentially and year-over-year, outpacing revenue growth in the year-over-year comparison. This was the primary factor behind the improvement in free cash flow and margin.
Higher operating cash flow directly lifted free cash flow and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially while operating cash flow increased, resulting in higher free cash flow and an improved margin. Compared to the same quarter last year, revenue grew and operating cash flow rose more sharply, further lifting free cash flow and margin.
Sequentially, free cash flow and margin improved as operating cash flow increased while revenue held steady. Year-over-year, all key metrics strengthened: revenue, operating cash flow, free cash flow, and margin were all higher, with capital expenditure lower.
Monitor the trend in capital expenditure, which rose slightly from the prior quarter but remained below the year-ago level.