Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved year over year but weakened slightly from the preceding quarter.
- Operating cash flow as a proportion of revenue was higher than the year-ago quarter but lower than the prior quarter, leading to a similar pattern in free cash flow margin. Capital expenditure rose from both comparison periods, partially offsetting the cash conversion improvement.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but free cash flow margin was slightly lower due to a larger increase in capital expenditure. Versus the same quarter one year earlier, all metrics improved, with free cash flow margin showing a notable increase.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$938.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$176.0M
Capital spending and related asset purchases.
FCF margin
27.9%
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 | $3.4B | $1.7B | $152.2M | $1.6B | 45.9% |
| 2023-03-31 | $3.2B | $1.4B | $178.2M | $1.2B | 37.6% |
| 2023-06-30 | $3.2B | $1.0B | $113.0M | $909.4M | 28.8% |
| 2023-09-30 | $3.4B | $1.1B | $176.0M | $938.3M | 27.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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 Growth
Operating cash flow was higher than both the prior quarter and the same quarter last year, providing the primary support for free cash flow. This occurred alongside higher revenue.
The increase in operating cash flow drove free cash flow higher compared to both the prior quarter and the year-ago quarter.
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 year-ago quarter but lower than the prior quarter, leading to a similar pattern in free cash flow margin. Capital expenditure rose from both comparison periods, partially offsetting the cash conversion improvement.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, but free cash flow margin was slightly lower due to a larger increase in capital expenditure. Versus the same quarter one year earlier, all metrics improved, with free cash flow margin showing a notable increase.
Monitor the trend in capital expenditure, as it increased from both the prior quarter and the year-ago quarter, affecting free cash flow margin.