Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved significantly versus both the prior quarter and the same quarter last year, driven by a substantial increase in operating cash flow. Revenue was slightly lower sequentially but higher year-over-year.
- Operating cash flow was much higher than the prior quarter and the year-ago quarter, while capital expenditure rose modestly. The result was a free cash flow margin that strengthened well above the previous levels.
- Compared to the previous quarter, operating cash flow and free cash flow were higher, and the margin improved. Versus the same quarter a year ago, all cash flow metrics improved, with operating cash flow being the strongest driver.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$753.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$892.0M
Cash generated by operations before capital spending.
CapEx
$139.0M
Capital spending and related asset purchases.
FCF margin
16.2%
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 | $2.1B | $587.0M | $118.0M | $469.0M | 21.8% |
| 2023-03-31 | $4.4B | $85.0M | $120.0M | -$35.0M | -0.8% |
| 2023-06-30 | $4.9B | $536.0M | $122.0M | $414.0M | 8.5% |
| 2023-09-30 | $4.6B | $892.0M | $139.0M | $753.0M | 16.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 176.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong operating cash flow
Operating cash flow increased substantially from both the prior quarter and the prior-year period, providing the primary lift to free cash flow and margin.
The improvement in operating cash flow directly boosted free cash flow and margin to significantly higher levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was much higher than the prior quarter and the year-ago quarter, while capital expenditure rose modestly. The result was a free cash flow margin that strengthened well above the previous levels.
Compared to the previous quarter, operating cash flow and free cash flow were higher, and the margin improved. Versus the same quarter a year ago, all cash flow metrics improved, with operating cash flow being the strongest driver.
Monitor capital expenditure trends, as modest increases may continue alongside higher operating cash flow.