Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the prior quarter, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow was higher while the margin remained broadly stable.
- Revenue was stable sequentially, but operating cash flow rose substantially, lifting free cash flow and the free cash flow margin. Capital expenditure declined, further supporting cash conversion.
- Compared to the prior quarter, free cash flow and margin were higher, with operating cash flow improved and capital expenditure lower. Versus the same quarter a year ago, free cash flow was higher and revenue was higher, while the margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$492.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$520.3M
Cash generated by operations before capital spending.
CapEx
$27.8M
Capital spending and related asset purchases.
FCF margin
26.5%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.5B | $298.5M | $52.6M | $245.9M | 16.3% |
| 2023-03-31 | $1.7B | $424.5M | $40.1M | $384.4M | 22.6% |
| 2023-06-30 | $1.9B | $338.7M | $42.3M | $296.4M | 16.0% |
| 2023-09-30 | $1.9B | $520.3M | $27.8M | $492.5M | 26.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 increased significantly from the prior quarter and was higher than the same quarter last year, providing the primary lift to free cash flow.
This drove a substantial sequential improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, but operating cash flow rose substantially, lifting free cash flow and the free cash flow margin. Capital expenditure declined, further supporting cash conversion.
Compared to the prior quarter, free cash flow and margin were higher, with operating cash flow improved and capital expenditure lower. Versus the same quarter a year ago, free cash flow was higher and revenue was higher, while the margin was slightly lower.
Monitor the trend in capital expenditure, which declined this quarter after being higher in the prior quarter.