Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow improved sequentially as operating cash flow increased while capital expenditure remained stable. However, compared to the same quarter a year earlier, free cash flow was lower due to a decline in revenue and operating cash flow.
- Revenue was higher than the prior quarter but lower than a year ago. Operating cash flow followed a similar pattern, while capital expenditure was unchanged from the prior quarter and slightly lower year-over-year. The free cash flow margin improved from the prior quarter but remained below the year-ago level, indicating a mixed cash conversion performance.
- Sequentially, revenue and operating cash flow were higher, leading to improved free cash flow and margin. Year-over-year, all metrics were lower except capital expenditure, which was slightly reduced.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$498.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$99.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$169.0M
Cash generated by operations before capital spending.
CapEx
$70.0M
Capital spending and related asset purchases.
FCF margin
6.4%
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 | $1.9B | $228.0M | $54.0M | $174.0M | 9.4% |
| 2023-06-30 | $1.6B | $218.0M | $50.0M | $168.0M | 10.5% |
| 2023-09-29 | $1.5B | $127.0M | $70.0M | $57.0M | 3.9% |
| 2023-12-29 | $1.6B | $169.0M | $70.0M | $99.0M | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -521.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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 Improvement
Operating cash flow increased from the prior quarter, driving free cash flow higher despite stable capital expenditure. This improvement was the primary factor behind the sequential rise in free cash flow margin.
The higher operating cash flow directly boosted free cash flow and margin compared to the prior quarter.
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 a year ago. Operating cash flow followed a similar pattern, while capital expenditure was unchanged from the prior quarter and slightly lower year-over-year. The free cash flow margin improved from the prior quarter but remained below the year-ago level, indicating a mixed cash conversion performance.
Sequentially, revenue and operating cash flow were higher, leading to improved free cash flow and margin. Year-over-year, all metrics were lower except capital expenditure, which was slightly reduced.
Monitor the relationship between revenue and operating cash flow, as changes in this conversion efficiency directly influence free cash flow.