Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter after a negative prior quarter, though it remained lower than the same quarter last year. Revenue was stable sequentially and higher than the year-ago period.
- Operating cash flow improved sharply from negative to positive, driving free cash flow positive despite a capital expenditure that was higher than the prior quarter. The free cash flow margin, while positive, was lower than the year-ago margin.
- Compared to the prior quarter, free cash flow improved from negative to positive and the margin strengthened. Versus the same quarter one year earlier, free cash flow and margin weakened, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$721.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$381.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$405.5M
Cash generated by operations before capital spending.
CapEx
$24.2M
Capital spending and related asset purchases.
FCF margin
10.7%
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 | $3.9B | $1.2B | $12.6M | $1.2B | 30.1% |
| 2023-03-31 | $3.4B | -$522.1M | $23.1M | -$545.2M | -15.8% |
| 2023-06-30 | $3.6B | -$262.5M | $16.9M | -$279.4M | -7.7% |
| 2023-09-30 | $3.6B | $405.5M | $24.2M | $381.3M | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 Turnaround
The strongest observable driver was the swing in operating cash flow from negative to positive, which directly enabled positive free cash flow this quarter.
This improvement reversed the prior quarter’s free cash flow deficit despite a slightly higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved sharply from negative to positive, driving free cash flow positive despite a capital expenditure that was higher than the prior quarter. The free cash flow margin, while positive, was lower than the year-ago margin.
Compared to the prior quarter, free cash flow improved from negative to positive and the margin strengthened. Versus the same quarter one year earlier, free cash flow and margin weakened, while revenue was higher.
Monitor whether operating cash flow can sustain its positive trajectory given the prior quarter’s negative result.