Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow turned positive from the prior quarter but was lower than the year-ago quarter.
- Operating cash flow turned positive this quarter, reversing the negative level of the prior quarter, while capital expenditure was slightly higher. The free cash flow margin improved from negative to positive, though it remained below the year-ago level.
- Compared to the prior quarter, operating cash flow and free cash flow both improved significantly, turning from negative to positive. Compared to the same quarter last year, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$158.0M
Capital spending and related asset purchases.
FCF margin
14.8%
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 | $7.4B | $1.6B | $158.0M | $1.4B | 19.4% |
| 2023-03-31 | $7.0B | $1.2B | $170.0M | $1.0B | 14.2% |
| 2023-06-30 | $7.3B | -$200.0M | $150.0M | -$350.0M | -4.8% |
| 2023-09-30 | $7.4B | $1.3B | $158.0M | $1.1B | 14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 recovery
Operating cash flow rebounded from a negative level in the prior quarter to a positive level this quarter, driving free cash flow into positive territory. This was the strongest observable driver of the quarter's cash conversion improvement.
The recovery in operating cash flow was the primary factor behind the swing from negative to positive free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow turned positive this quarter, reversing the negative level of the prior quarter, while capital expenditure was slightly higher. The free cash flow margin improved from negative to positive, though it remained below the year-ago level.
Compared to the prior quarter, operating cash flow and free cash flow both improved significantly, turning from negative to positive. Compared to the same quarter last year, operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
Monitor whether operating cash flow can sustain its positive level in the coming quarter.