Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to the same quarter one year earlier, but weakened from the immediately preceding quarter. Revenue was stable versus the prior quarter and higher year over year.
- Cash conversion from revenue into free cash flow was supported by operating cash flow, which was higher than the year-ago quarter, though capital expenditure also increased. The resulting free cash flow margin was higher than the same quarter last year.
- Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin all declined, while capital expenditure increased slightly. Compared to the same quarter one year earlier, all metrics showed improvement: revenue, operating cash flow, capital expenditure, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$551.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$710.1M
Cash generated by operations before capital spending.
CapEx
$159.0M
Capital spending and related asset purchases.
FCF margin
14.1%
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 | $3.1B | $384.5M | $130.7M | $253.8M | 8.1% |
| 2023-03-31 | $2.8B | $3.4M | $181.4M | -$178.0M | -6.4% |
| 2023-06-30 | $3.9B | $891.0M | $153.7M | $737.3M | 19.0% |
| 2023-09-30 | $3.9B | $710.1M | $159.0M | $551.1M | 14.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow expansion
Free cash flow and free cash flow margin were both higher compared to the same quarter one year earlier, driven by higher operating cash flow. Revenue also increased year over year.
This improvement indicates stronger cash generation from operations compared to the prior year period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion from revenue into free cash flow was supported by operating cash flow, which was higher than the year-ago quarter, though capital expenditure also increased. The resulting free cash flow margin was higher than the same quarter last year.
Compared to the immediately preceding quarter, operating cash flow, free cash flow, and margin all declined, while capital expenditure increased slightly. Compared to the same quarter one year earlier, all metrics showed improvement: revenue, operating cash flow, capital expenditure, free cash flow, and margin were all higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as capital spending increased while conversion weakened sequentially.