Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened from the prior quarter but improved from the same quarter one year earlier. Revenue for the current quarter was higher than the prior quarter and lower than the year-ago quarter, while operating cash flow was lower sequentially and higher year over year.
- Revenue was higher than the prior quarter, but operating cash flow was lower, resulting in lower free cash flow and a weakened free cash flow margin. Compared with the year-ago quarter, revenue was lower while operating cash flow was higher, leading to improved free cash flow margin.
- Sequentially, revenue increased but operating cash flow and free cash flow decreased, causing free cash flow margin to weaken. Year over year, revenue decreased while operating cash flow and free cash flow increased, resulting in an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$263.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$300.0M
Cash generated by operations before capital spending.
CapEx
$37.0M
Capital spending and related asset purchases.
FCF margin
18.1%
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 | $1.6B | $494.0M | $34.0M | $460.0M | 29.1% |
| 2023-03-31 | $1.5B | $565.0M | $40.0M | $525.0M | 34.2% |
| 2023-06-30 | $1.4B | $414.0M | $39.0M | $375.0M | 26.2% |
| 2023-09-30 | $1.5B | $300.0M | $37.0M | $263.0M | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash flow strength
The strongest observable driver is the year-over-year improvement in operating cash flow, which rose while revenue fell, supporting a higher free cash flow margin than one year earlier.
This positive driver shows cash conversion efficiency improved compared with the same quarter one year ago.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, but operating cash flow was lower, resulting in lower free cash flow and a weakened free cash flow margin. Compared with the year-ago quarter, revenue was lower while operating cash flow was higher, leading to improved free cash flow margin.
Sequentially, revenue increased but operating cash flow and free cash flow decreased, causing free cash flow margin to weaken. Year over year, revenue decreased while operating cash flow and free cash flow increased, resulting in an improved free cash flow margin.
Monitor the relationship between revenue and operating cash flow, as operating cash flow moved inversely to revenue sequentially.