Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Free cash flow and free cash flow margin improved significantly compared to both the preceding quarter and the year-ago quarter.
- Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that was higher than both the prior quarter and the year-ago quarter. The conversion from revenue to free cash flow strengthened compared to both comparison periods.
- Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue was higher and operating cash flow was substantially higher, resulting in a much higher free cash flow margin.
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
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$152.9M
Capital spending and related asset purchases.
FCF margin
18.9%
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 | $5.2B | $641.0M | $233.8M | $407.2M | 7.8% |
| 2023-03-31 | $5.4B | $88.2M | $209.9M | -$121.7M | -2.2% |
| 2023-06-30 | $6.2B | $1.2B | $206.1M | $1.0B | 16.0% |
| 2023-09-30 | $6.1B | $1.3B | $152.9M | $1.2B | 18.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.1B | 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, while capital expenditure was lower than both comparison periods. This combination drove free cash flow and free cash flow margin higher.
The improvement in free cash flow margin was the most notable change across the reported metrics.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in a free cash flow margin that was higher than both the prior quarter and the year-ago quarter. The conversion from revenue to free cash flow strengthened compared to both comparison periods.
Compared to the immediately preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Versus the same quarter one year earlier, revenue was higher and operating cash flow was substantially higher, resulting in a much higher free cash flow margin.
Monitor whether the elevated operating cash flow level relative to revenue can be sustained in subsequent quarters.