Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin was higher than the prior quarter and the same quarter one year earlier. Operating cash flow increased more than revenue, while capital expenditure also rose.
- Operating cash flow as a percentage of revenue was higher than in the prior quarter and the year-ago quarter, indicating improved cash conversion. After deducting capital expenditure, the resulting free cash flow margin improved accordingly.
- Compared to the immediately preceding quarter, revenue and operating cash flow were higher, and free cash flow margin improved. The same pattern held versus the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$775.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$838.9M
Cash generated by operations before capital spending.
CapEx
$63.7M
Capital spending and related asset purchases.
FCF margin
30.2%
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 | $2.0B | $66.3M | $24.2M | $42.1M | 2.1% |
| 2023-03-31 | $2.3B | $187.1M | $31.5M | $155.6M | 6.8% |
| 2023-06-30 | $2.2B | $281.7M | $41.6M | $240.1M | 10.7% |
| 2023-09-30 | $2.6B | $838.9M | $63.7M | $775.2M | 30.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 256.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | 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 increased significantly from the prior quarter and from the same quarter last year, outpacing the increase in revenue.
This was the primary factor behind the improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher than in the prior quarter and the year-ago quarter, indicating improved cash conversion. After deducting capital expenditure, the resulting free cash flow margin improved accordingly.
Compared to the immediately preceding quarter, revenue and operating cash flow were higher, and free cash flow margin improved. The same pattern held versus the same quarter one year earlier.
Capital expenditure increased from both the prior quarter and the year-ago quarter, and its trend may affect future free cash flow.