Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened sequentially but weakened relative to the year-ago period.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the same quarter last year, leading to a free cash flow margin that improved sequentially but declined year-over-year.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher. Versus the same quarter last year, revenue and capital expenditure were higher, while operating cash flow and free cash flow were also higher, though the free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$740.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$266.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$406.6M
Cash generated by operations before capital spending.
CapEx
$139.8M
Capital spending and related asset purchases.
FCF margin
4.7%
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 | $4.4B | $583.1M | $90.2M | $493.0M | 11.2% |
| 2023-03-31 | $4.4B | $38.4M | $80.3M | -$41.9M | -0.9% |
| 2023-06-30 | $5.0B | $127.4M | $105.3M | $22.1M | 0.4% |
| 2023-09-30 | $5.6B | $406.6M | $139.8M | $266.8M | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 Improvement
Operating cash flow was substantially higher than the prior quarter and also higher than the same quarter last year, providing the primary support for the increase in free cash flow.
The higher operating cash flow drove free cash flow higher despite a larger capital expenditure outlay.
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 was higher than the prior quarter but lower than the same quarter last year, leading to a free cash flow margin that improved sequentially but declined year-over-year.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher. Versus the same quarter last year, revenue and capital expenditure were higher, while operating cash flow and free cash flow were also higher, though the free cash flow margin was lower.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure increased both sequentially and year-over-year.