Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow weakened sharply versus both the prior quarter and the same quarter last year, driven by lower operating cash flow and higher capital spending. The free cash flow margin contracted significantly from the year-ago level.
- Revenue was stable compared to the prior quarter but lower than a year ago. Operating cash flow declined relative to both periods, while capital expenditure increased, resulting in a much lower free cash flow and a weakened conversion rate.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, with operating cash flow slightly lower and capital expenditure higher. Versus the same quarter one year earlier, all metrics weakened: revenue, operating cash flow, free cash flow, and margin were all lower, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$117.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$660.0M
Cash generated by operations before capital spending.
CapEx
$543.0M
Capital spending and related asset purchases.
FCF margin
3.9%
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 | $798.0M | $666.0M | $132.0M | 4.1% |
| 2023-03-31 | $3.1B | $1.2B | $428.0M | $745.0M | 23.8% |
| 2023-06-30 | $3.0B | $673.0M | $520.0M | $153.0M | 5.1% |
| 2023-09-30 | $3.0B | $660.0M | $543.0M | $117.0M | 3.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 24.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 18.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Decline
Operating cash flow was lower than both the prior quarter and the same quarter last year, while capital expenditure increased. This combination was the strongest observable driver of the weakened free cash flow.
The decline in operating cash flow, alongside higher capital spending, directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter but lower than a year ago. Operating cash flow declined relative to both periods, while capital expenditure increased, resulting in a much lower free cash flow and a weakened conversion rate.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were lower, with operating cash flow slightly lower and capital expenditure higher. Versus the same quarter one year earlier, all metrics weakened: revenue, operating cash flow, free cash flow, and margin were all lower, while capital expenditure was higher.
Monitor the trajectory of operating cash flow, which declined from both the prior quarter and the year-ago period.