Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow turned positive year over year but decreased from the previous quarter.
- Operating cash flow declined from the prior quarter despite higher revenue, while capital expenditure also fell. The free cash flow margin weakened sequentially but improved significantly compared with the prior year.
- Compared with the preceding quarter, free cash flow was lower as a result of a larger decline in operating cash flow partially offset by lower capital spending. Versus the prior year quarter, free cash flow improved sharply from a negative position to a positive value.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$378.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$659.0M
Cash generated by operations before capital spending.
CapEx
$281.0M
Capital spending and related asset purchases.
FCF margin
9.1%
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 | $2.6B | $575.7M | $166.7M | $409.0M | 15.7% |
| 2023-03-31 | $2.9B | $1.3B | $252.0M | $1.1B | 36.7% |
| 2023-06-30 | $3.5B | $1.4B | $796.0M | $596.0M | 16.9% |
| 2023-09-30 | $4.2B | $659.0M | $281.0M | $378.0M | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 37.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | 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 Decline
Operating cash flow decreased from the previous quarter even as revenue grew, indicating weaker cash conversion. This was the most significant directional change among the cash flow metrics.
If this pattern persists, free cash flow generation may remain pressured despite top-line growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined from the prior quarter despite higher revenue, while capital expenditure also fell. The free cash flow margin weakened sequentially but improved significantly compared with the prior year.
Compared with the preceding quarter, free cash flow was lower as a result of a larger decline in operating cash flow partially offset by lower capital spending. Versus the prior year quarter, free cash flow improved sharply from a negative position to a positive value.
Track the trend in operating cash flow given its sequential decline despite revenue growth.