Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter but lower than the same quarter last year. Operating cash flow and free cash flow improved sharply from the prior quarter, though both were lower than the year-ago period.
- Operating cash flow exceeded revenue, resulting in a free cash flow margin above one hundred percent. Capital expenditure was a modest portion of operating cash flow, supporting strong free cash flow generation.
- Compared to the prior quarter, revenue was higher, operating cash flow and free cash flow were markedly higher, and free cash flow margin improved. Compared to the same quarter last year, revenue was lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$126.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$3.9B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$4.2B
Cash generated by operations before capital spending.
CapEx
$329.0M
Capital spending and related asset purchases.
FCF margin
126.6%
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 | $3.1B | -$2.9B | $182.0M | -$3.0B | -98.2% |
| 2023-06-30 | $3.1B | -$852.0M | $170.0M | -$1.0B | -32.9% |
| 2023-09-30 | $2.7B | $222.0M | $135.0M | $87.0M | 3.2% |
| 2023-12-31 | $3.0B | $4.2B | $329.0M | $3.9B | 126.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1834.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.8% | 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 surge
Operating cash flow rose compared to the prior quarter, driving a large increase in free cash flow and a significant improvement in free cash flow margin.
Free cash flow margin improved from the prior quarter, reaching a level above revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue, resulting in a free cash flow margin above one hundred percent. Capital expenditure was a modest portion of operating cash flow, supporting strong free cash flow generation.
Compared to the prior quarter, revenue was higher, operating cash flow and free cash flow were markedly higher, and free cash flow margin improved. Compared to the same quarter last year, revenue was lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened.
Monitor the relationship between operating cash flow and revenue, as the current quarter's free cash flow margin exceeded revenue, which may not persist.