Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved compared to both the preceding quarter and the year-ago quarter, resulting in a stronger free cash flow margin.
- Operating cash flow as a proportion of revenue increased relative to both the prior quarter and the year-ago quarter, while capital expenditure rose moderately. The resulting free cash flow margin expanded, indicating improved cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$190.1M
Capital spending and related asset purchases.
FCF margin
13.3%
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 | $8.1B | $1.2B | $976.8M | $272.0M | 3.3% |
| 2023-03-31 | $8.5B | $684.8M | $138.7M | $546.1M | 6.4% |
| 2023-06-30 | $8.9B | $975.5M | $168.4M | $807.1M | 9.1% |
| 2023-09-30 | $8.7B | $1.3B | $190.1M | $1.2B | 13.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 Strength
Operating cash flow rose compared to both the prior quarter and the year-ago quarter, even as revenue was slightly lower sequentially. This was the primary factor behind the improvement in free cash flow and margin.
Higher operating cash flow drove free cash flow and margin higher despite a modest increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue increased relative to both the prior quarter and the year-ago quarter, while capital expenditure rose moderately. The resulting free cash flow margin expanded, indicating improved cash conversion efficiency.
Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher.
Monitor the trend in capital expenditure, which increased sequentially and year-over-year, as it directly impacts free cash flow generation.