Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to the same quarter last year and increased from the prior quarter. Operating cash flow improved from the prior quarter but declined from the year-ago period, resulting in free cash flow margin that was higher than the prior quarter but lower than the year-ago quarter.
- Operating cash flow as a share of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased from both comparison periods, yet free cash flow margin improved sequentially due to the operating cash flow increase.
- Compared to the prior quarter, revenue and operating cash flow were higher, leading to a higher free cash flow margin. Compared to the same quarter last year, revenue was stable while operating cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$375.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$417.0M
Cash generated by operations before capital spending.
CapEx
$42.0M
Capital spending and related asset purchases.
FCF margin
22.8%
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 | $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% |
| 2023-12-31 | $1.6B | $417.0M | $42.0M | $375.0M | 22.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 190.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential operating cash flow improvement
Operating cash flow increased from the prior quarter, driving a higher free cash flow margin despite a modest rise in capital expenditure.
The higher operating cash flow supported a stronger free cash flow generation compared to the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure increased from both comparison periods, yet free cash flow margin improved sequentially due to the operating cash flow increase.
Compared to the prior quarter, revenue and operating cash flow were higher, leading to a higher free cash flow margin. Compared to the same quarter last year, revenue was stable while operating cash flow and free cash flow margin were lower.
Monitor the company's credit rating outlook, as a downgrade could increase funding costs and reduce financial flexibility, as noted in the filing.