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 and was higher than the same quarter last year, driven by a strong increase in operating cash flow. Revenue grew modestly, while capital expenditure declined, contributing to a higher free cash flow margin.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that improved compared to both the prior quarter and the year-ago quarter. Revenue was higher than both comparison periods, supporting the conversion.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with a higher free cash flow margin despite a modest increase in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$894.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$109.4M
Capital spending and related asset purchases.
FCF margin
15.5%
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 | $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% |
| 2023-12-31 | $5.8B | $1.0B | $109.4M | $894.1M | 15.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 423.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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 Strength
Operating cash flow was the strongest observable driver, rising significantly from both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This directly lifted free cash flow and margin.
The higher operating cash flow was the primary factor behind the improved free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that improved compared to both the prior quarter and the year-ago quarter. Revenue was higher than both comparison periods, supporting the conversion.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, while capital expenditure was lower, leading to a stronger free cash flow margin. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher, with a higher free cash flow margin despite a modest increase in capital expenditure.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.