Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a large increase in operating cash flow. Compared to the same quarter last year, free cash flow was lower despite slightly higher revenue.
- Revenue was stable, while operating cash flow rose significantly, leading to a much higher free cash flow margin. Capital expenditure remained modest and had a limited effect on conversion.
- Compared to the prior quarter, free cash flow and margin were substantially higher, driven by a much stronger operating cash flow. Versus the same quarter last year, free cash flow and margin were lower, as operating cash flow declined despite a slight revenue increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$598.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$182.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$187.3M
Cash generated by operations before capital spending.
CapEx
$4.6M
Capital spending and related asset purchases.
FCF margin
33.2%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $542.2M | $210.9M | $3.8M | $207.2M | 38.2% |
| 2023-06-30 | $542.3M | $169.2M | $5.1M | $164.1M | 30.3% |
| 2023-09-30 | $546.6M | $49.8M | $5.8M | $44.0M | 8.0% |
| 2023-12-31 | $550.2M | $187.3M | $4.6M | $182.8M | 33.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 275.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 Recovery
Operating cash flow increased sharply from the prior quarter, driving a substantial improvement in free cash flow and margin. This was the strongest observable factor in the quarter.
The higher operating cash flow directly lifted free cash flow and margin above the prior quarter's levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, while operating cash flow rose significantly, leading to a much higher free cash flow margin. Capital expenditure remained modest and had a limited effect on conversion.
Compared to the prior quarter, free cash flow and margin were substantially higher, driven by a much stronger operating cash flow. Versus the same quarter last year, free cash flow and margin were lower, as operating cash flow declined despite a slight revenue increase.
Monitor whether operating cash flow can sustain its current level, given the large swing from the prior quarter.