Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the year-ago quarter, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened significantly compared with both periods.
- Revenue was higher than the prior quarter but lower than the year-ago quarter. Operating cash flow increased relative to both the prior quarter and the year-ago quarter, while capital expenditure decreased compared with both periods, resulting in a higher free cash flow and an improved free cash flow margin.
- Compared with the prior quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, free cash flow was higher, and the free cash flow margin was higher. Compared with the year-ago quarter, revenue was lower, operating cash flow was higher, capital expenditure was much lower, free cash flow turned positive from negative, and the free cash flow margin improved from negative to positive.
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
$332.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$432.6M
Cash generated by operations before capital spending.
CapEx
$99.8M
Capital spending and related asset purchases.
FCF margin
49.3%
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 | $675.5M | $311.2M | $69.3M | $241.8M | 35.8% |
| 2023-06-30 | -$564.9M | $486.9M | $84.0M | $402.9M | -71.3% |
| 2023-09-30 | $45.1M | $313.7M | $115.4M | $198.3M | 439.5% |
| 2023-12-31 | $675.0M | $432.6M | $99.8M | $332.8M | 49.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 303.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.1B | 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 was higher than both the prior quarter and the year-ago quarter, providing the primary support for the improvement in free cash flow.
Higher operating cash flow combined with lower capital expenditure drove free cash flow higher and the margin into positive territory.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter but lower than the year-ago quarter. Operating cash flow increased relative to both the prior quarter and the year-ago quarter, while capital expenditure decreased compared with both periods, resulting in a higher free cash flow and an improved free cash flow margin.
Compared with the prior quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, free cash flow was higher, and the free cash flow margin was higher. Compared with the year-ago quarter, revenue was lower, operating cash flow was higher, capital expenditure was much lower, free cash flow turned positive from negative, and the free cash flow margin improved from negative to positive.
Monitor the trend in capital expenditure, as it decreased significantly from both the prior quarter and the year-ago quarter.