Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply year over year and quarter over quarter, driven by higher operating cash flow. The free cash flow margin rose significantly despite lower revenue compared to a year ago.
- Revenue remained stable versus the prior quarter but was lower than a year earlier. Operating cash flow strengthened, more than offsetting slightly higher capital expenditure, resulting in higher free cash flow and an improved free cash flow margin.
- Compared with the preceding quarter, free cash flow and margin improved on stronger operating cash flow. Versus the same quarter last year, free cash flow and margin were also higher, despite a substantial revenue decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.9B
Cash generated by operations before capital spending.
CapEx
$405.0M
Capital spending and related asset purchases.
FCF margin
24.0%
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 | $11.0M | $1.9B | $506.0M | $1.4B | 12872.7% |
| 2023-03-31 | $6.1B | $1.3B | $475.0M | $800.0M | 13.2% |
| 2023-06-30 | $6.3B | $1.5B | $377.0M | $1.1B | 18.0% |
| 2023-09-30 | $6.3B | $1.9B | $405.0M | $1.5B | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -72.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.5% | 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.
Operating cash flow strength
Operating cash flow rose sharply from both the prior quarter and the year-ago quarter, providing the primary uplift to free cash flow. This occurred without a corresponding increase in revenue, indicating improved cash conversion efficiency.
Higher operating cash flow directly boosted free cash flow and expanded the margin, reinforcing liquidity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable versus the prior quarter but was lower than a year earlier. Operating cash flow strengthened, more than offsetting slightly higher capital expenditure, resulting in higher free cash flow and an improved free cash flow margin.
Compared with the preceding quarter, free cash flow and margin improved on stronger operating cash flow. Versus the same quarter last year, free cash flow and margin were also higher, despite a substantial revenue decline.
Monitor whether operating cash flow can sustain its higher level in subsequent quarters.