Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was substantially higher than the preceding quarter, driven by a large increase in operating cash flow relative to revenue. Compared to the same quarter last year, free cash flow was lower, as operating cash flow declined while capital expenditure was slightly higher.
- Revenue was stable compared to the prior quarter, but operating cash flow rose sharply, resulting in a much higher free cash flow margin. Capital expenditure increased from the prior quarter but remained small relative to operating cash flow.
- Compared to the immediately preceding quarter, free cash flow and margin improved significantly due to higher operating cash flow. Versus the same quarter one year earlier, free cash flow and margin weakened, as operating cash flow was lower despite slightly higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$2.7B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$2.8B
Cash generated by operations before capital spending.
CapEx
$63.8M
Capital spending and related asset purchases.
FCF margin
251.3%
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 | $1.1B | -$164.9M | $11.5M | -$176.4M | -16.6% |
| 2023-06-30 | $1.1B | -$99.4M | $20.1M | -$119.5M | -10.9% |
| 2023-09-30 | $1.1B | $86.7M | $21.1M | $65.6M | 5.9% |
| 2023-12-31 | $1.1B | $2.8B | $63.8M | $2.7B | 251.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 2422.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | 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 Surge
Operating cash flow increased substantially from the prior quarter, while revenue remained stable. This was the strongest observable driver of free cash flow improvement.
The surge in operating cash flow lifted free cash flow and margin well above the prior quarter's levels.
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 operating cash flow rose sharply, resulting in a much higher free cash flow margin. Capital expenditure increased from the prior quarter but remained small relative to operating cash flow.
Compared to the immediately preceding quarter, free cash flow and margin improved significantly due to higher operating cash flow. Versus the same quarter one year earlier, free cash flow and margin weakened, as operating cash flow was lower despite slightly higher revenue.
Monitor the sustainability of the elevated operating cash flow level relative to revenue, as it drove the quarter's free cash flow.