Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly versus both periods.
- Revenue rose while operating cash flow increased substantially, leading to a higher free cash flow margin. Capital expenditure was slightly lower than the year-ago quarter, contributing to the conversion improvement.
- Compared to the prior quarter, revenue was higher, operating cash flow improved sharply, and free cash flow turned from a low level to a much higher figure. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
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
$649.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$714.0M
Cash generated by operations before capital spending.
CapEx
$65.0M
Capital spending and related asset purchases.
FCF margin
25.4%
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 | $2.7B | $1.3B | $73.0M | $1.2B | 44.3% |
| 2023-04-01 | $2.2B | -$8.0M | $54.0M | -$62.0M | -2.9% |
| 2023-07-01 | $2.4B | $93.0M | $53.0M | $40.0M | 1.7% |
| 2023-09-30 | $2.6B | $714.0M | $65.0M | $649.0M | 25.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 139.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.1B | 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 surge
Operating cash flow rose sharply compared to both the prior quarter and the year-ago quarter, far outpacing the increase in revenue. This was the strongest observable driver of free cash flow improvement.
The increase in operating cash flow directly boosted 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 rose while operating cash flow increased substantially, leading to a higher free cash flow margin. Capital expenditure was slightly lower than the year-ago quarter, contributing to the conversion improvement.
Compared to the prior quarter, revenue was higher, operating cash flow improved sharply, and free cash flow turned from a low level to a much higher figure. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the sustainability of operating cash flow given the shift from a very low prior quarter level.