Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased, leading to higher free cash flow and an improved margin compared to the prior quarter. The free cash flow margin also exceeded the year-ago level.
- Revenue grew while operating cash flow rose more than proportionally, resulting in a higher free cash flow after relatively stable capital expenditure. The free cash flow margin widened accordingly.
- Compared to the prior quarter, all key metrics improved. Versus the same quarter a year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow as well as its margin strengthened.
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
$385.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$389.0M
Cash generated by operations before capital spending.
CapEx
$3.8M
Capital spending and related asset purchases.
FCF margin
55.8%
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 | $592.2M | $264.1M | $6.2M | $257.9M | 43.6% |
| 2023-06-30 | $621.2M | $291.8M | $9.2M | $282.7M | 45.5% |
| 2023-09-30 | $625.4M | $291.1M | $3.6M | $287.6M | 46.0% |
| 2023-12-31 | $690.1M | $389.0M | $3.8M | $385.1M | 55.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.0B | 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 relative to both the prior quarter and the same quarter last year, contributing to the improvement in free cash flow.
This was accompanied by a higher free cash flow margin compared to both periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew while operating cash flow rose more than proportionally, resulting in a higher free cash flow after relatively stable capital expenditure. The free cash flow margin widened accordingly.
Compared to the prior quarter, all key metrics improved. Versus the same quarter a year earlier, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow as well as its margin strengthened.
The company’s share repurchase activity during the quarter, as disclosed in the filing, is a concrete item to monitor for capital allocation trends.