Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a substantial increase in operating cash flow. Compared to the same quarter last year, free cash flow was slightly higher despite lower revenue.
- Revenue was lower than the prior quarter but operating cash flow was significantly higher, resulting in a free cash flow margin that improved from the prior quarter and was higher than the same quarter last year. Capital expenditure remained modest relative to operating cash flow.
- Compared to the immediately preceding quarter, revenue was higher and operating cash flow was substantially higher, leading to a much higher free cash flow margin. Versus the same quarter one year earlier, revenue was lower but operating cash flow was higher, resulting in a higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$651.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$658.1M
Cash generated by operations before capital spending.
CapEx
$7.1M
Capital spending and related asset purchases.
FCF margin
25.3%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $2.7B | $817.2M | $6.5M | $810.7M | 29.9% |
| 2023-03-31 | $2.2B | $315.5M | $2.7M | $312.8M | 14.4% |
| 2023-06-30 | $2.3B | $28.7M | $8.7M | $19.9M | 0.9% |
| 2023-09-30 | $2.6B | $658.1M | $7.1M | $651.0M | 25.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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 Surge
Operating cash flow increased sharply from the prior quarter and was also higher than the same quarter last year, despite lower year-over-year revenue. This was the strongest observable driver of free cash flow improvement.
The surge in operating cash flow directly drove free cash flow to a level higher than both the prior quarter and the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but operating cash flow was significantly higher, resulting in a free cash flow margin that improved from the prior quarter and was higher than the same quarter last year. Capital expenditure remained modest relative to operating cash flow.
Compared to the immediately preceding quarter, revenue was higher and operating cash flow was substantially higher, leading to a much higher free cash flow margin. Versus the same quarter one year earlier, revenue was lower but operating cash flow was higher, resulting in a higher free cash flow margin.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.