Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter showed a strong free cash flow margin, supported by operating cash flow that remained stable versus the prior quarter and improved from a year earlier. Capital expenditure was consistent, while revenue declined sequentially but grew year over year.
- Operating cash flow converted into free cash flow at a higher margin compared to both the previous quarter and the same quarter last year, driven by stable cash generation relative to lower revenue sequentially and higher revenue year over year.
- Compared to the prior quarter, free cash flow margin improved significantly despite lower revenue, while operating cash flow was essentially unchanged. Versus the year-ago quarter, free cash flow rose alongside higher revenue and a stronger margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$763.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$898.0M
Cash generated by operations before capital spending.
CapEx
$135.0M
Capital spending and related asset purchases.
FCF margin
32.5%
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 | $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% |
| 2023-12-31 | $2.3B | $898.0M | $135.0M | $763.0M | 32.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 847.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Expansion
The free cash flow margin increased from both the prior quarter and the year-ago period, driven by stable operating cash flow and consistent capital expenditure against lower sequential revenue.
This margin improvement strengthened cash generation efficiency during the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted into free cash flow at a higher margin compared to both the previous quarter and the same quarter last year, driven by stable cash generation relative to lower revenue sequentially and higher revenue year over year.
Compared to the prior quarter, free cash flow margin improved significantly despite lower revenue, while operating cash flow was essentially unchanged. Versus the year-ago quarter, free cash flow rose alongside higher revenue and a stronger margin.
Monitor the trend of operating cash flow relative to revenue, as sequential revenue declined sharply yet cash generation held stable.