Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow relative to revenue. Revenue was lower than both comparison periods, while capital expenditure increased sequentially.
- Operating cash flow was higher than the prior quarter but lower than the year-ago quarter, and capital expenditure rose sequentially, resulting in free cash flow that was higher than the prior quarter but lower than a year ago. The free cash flow margin strengthened to above both comparison periods.
- Compared with the prior quarter, revenue was slightly lower while operating cash flow and free cash flow were higher, and free cash flow margin improved. Versus the year-ago quarter, revenue was lower, operating cash flow was lower, and free cash flow was lower, yet free cash flow margin was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$860.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$249.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$281.5M
Cash generated by operations before capital spending.
CapEx
$32.4M
Capital spending and related asset purchases.
FCF margin
26.6%
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 | $928.7M | $153.3M | $23.2M | $130.1M | 14.0% |
| 2023-06-30 | $982.1M | $266.8M | $28.8M | $238.1M | 24.2% |
| 2023-09-30 | $942.5M | $264.3M | $21.0M | $243.3M | 25.8% |
| 2023-12-31 | $935.0M | $281.5M | $32.4M | $249.1M | 26.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 134.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Free Cash Flow Margin
The free cash flow margin rose compared to both the prior quarter and the same quarter one year earlier, driven by a higher proportion of operating cash flow relative to revenue. This occurred despite a modest increase in capital expenditure from the prior quarter.
The stronger margin indicates that the company generated more free cash flow per dollar of revenue than in either comparison period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than the prior quarter but lower than the year-ago quarter, and capital expenditure rose sequentially, resulting in free cash flow that was higher than the prior quarter but lower than a year ago. The free cash flow margin strengthened to above both comparison periods.
Compared with the prior quarter, revenue was slightly lower while operating cash flow and free cash flow were higher, and free cash flow margin improved. Versus the year-ago quarter, revenue was lower, operating cash flow was lower, and free cash flow was lower, yet free cash flow margin was slightly higher.
Monitor the trajectory of revenue, as it declined both sequentially and year-over-year.