Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive as operating cash flow improved while capital expenditure remained stable. The free cash flow margin strengthened compared with both the prior quarter and the same quarter last year.
- Revenue declined slightly from the prior quarter, but operating cash flow rose substantially, lifting free cash flow. The free cash flow margin expanded as cash generation outpaced capital spending relative to revenue.
- Compared with the prior quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved margin. Versus the same quarter last year, operating cash flow and free cash flow were higher, with revenue slightly lower and a significantly stronger margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$765.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$399.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$604.0M
Capital spending and related asset purchases.
FCF margin
16.0%
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 | $3.2B | $1.0B | $646.0M | $364.0M | 11.4% |
| 2023-03-31 | $2.7B | $481.0M | $526.0M | -$45.0M | -1.7% |
| 2023-06-30 | $2.7B | $663.0M | $616.0M | $47.0M | 1.8% |
| 2023-09-30 | $2.5B | $1.0B | $604.0M | $399.0M | 16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 252.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 24.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.4B | 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 Improvement
Operating cash flow increased significantly from both the prior quarter and the year-ago quarter. This was the primary observable factor behind the rise in free cash flow and the expansion of the free cash flow margin.
Higher operating cash flow turned free cash flow positive and drove margin improvement without a corresponding increase in revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined slightly from the prior quarter, but operating cash flow rose substantially, lifting free cash flow. The free cash flow margin expanded as cash generation outpaced capital spending relative to revenue.
Compared with the prior quarter, revenue was lower while operating cash flow and free cash flow were higher, leading to an improved margin. Versus the same quarter last year, operating cash flow and free cash flow were higher, with revenue slightly lower and a significantly stronger margin.
Monitor capital expenditure trends given their relatively stable level despite shifts in revenue and operating cash flow.