Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow margin turned positive, reflecting improved cash conversion from operations. Revenue held steady sequentially while operating cash flow increased.
- Revenue was stable versus the prior quarter, but operating cash flow rose, boosting free cash flow and margin. Capital expenditure remained at a similar level.
- Compared to the preceding quarter, free cash flow and margin improved. Versus the same quarter last year, free cash flow swung from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$31.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$493.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$543.0M
Cash generated by operations before capital spending.
CapEx
$50.0M
Capital spending and related asset purchases.
FCF margin
14.0%
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 | $3.2B | -$624.0M | $42.0M | -$666.0M | -21.1% |
| 2023-06-30 | $3.3B | -$188.0M | $53.0M | -$241.0M | -7.3% |
| 2023-09-30 | $3.5B | $434.0M | $51.0M | $383.0M | 10.9% |
| 2023-12-31 | $3.5B | $543.0M | $50.0M | $493.0M | 14.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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.
Stronger cash generation
Operating cash flow improved significantly from both the prior quarter and the negative level a year ago, leading to a positive free cash flow margin.
This strengthened cash flow supported the company's ability to fund operations and investments without external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter, but operating cash flow rose, boosting free cash flow and margin. Capital expenditure remained at a similar level.
Compared to the preceding quarter, free cash flow and margin improved. Versus the same quarter last year, free cash flow swung from negative to positive.
Monitor the sustainability of operating cash flow, as it is the primary driver of free cash flow changes.