Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially but improved from the same quarter one year earlier. Operating cash flow was relatively stable versus the prior quarter, while capital expenditure rose.
- Revenue was stable quarter over quarter; operating cash flow was slightly lower, but a larger capital expenditure reduced free cash flow and margin. Compared to one year earlier, operating cash flow was lower, yet a significantly lower capital expenditure led to higher free cash flow and an improved margin.
- Sequentially, free cash flow and margin were lower due to a higher capital expenditure on essentially flat revenue and operating cash flow. Year over year, free cash flow and margin were higher, as the decrease in capital expenditure more than offset the decline in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$845.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$194.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$335.3M
Cash generated by operations before capital spending.
CapEx
$141.1M
Capital spending and related asset purchases.
FCF margin
10.0%
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 | $2.0B | $280.4M | $112.4M | $168.0M | 8.5% |
| 2023-06-30 | $2.0B | $359.9M | $126.4M | $233.5M | 12.0% |
| 2023-09-30 | $1.9B | $339.5M | $89.8M | $249.7M | 12.9% |
| 2023-12-31 | $1.9B | $335.3M | $141.1M | $194.2M | 10.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital Expenditure Increase
Capital expenditure rose sharply compared to the prior quarter, which was the strongest observable driver of the sequential free cash flow decline. This change occurred despite relatively stable revenue and operating cash flow.
Higher capital spending directly reduced free cash flow and margin sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable quarter over quarter; operating cash flow was slightly lower, but a larger capital expenditure reduced free cash flow and margin. Compared to one year earlier, operating cash flow was lower, yet a significantly lower capital expenditure led to higher free cash flow and an improved margin.
Sequentially, free cash flow and margin were lower due to a higher capital expenditure on essentially flat revenue and operating cash flow. Year over year, free cash flow and margin were higher, as the decrease in capital expenditure more than offset the decline in operating cash flow.
Monitor capital expenditure level relative to the prior quarter increase, as it was the primary factor reducing sequential free cash flow.