Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to both the immediately preceding quarter and the same quarter one year earlier. The free cash flow margin improved, reflecting stronger cash generation relative to revenue.
- Operating cash flow rose from the prior quarter and from a year ago, while capital expenditure stayed relatively stable. This drove free cash flow higher and expanded the free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Versus the same quarter one year earlier, all metrics showed similar improvement, with the margin strengthening notably.
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
$425.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$462.0M
Cash generated by operations before capital spending.
CapEx
$37.0M
Capital spending and related asset purchases.
FCF margin
22.9%
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 | $1.4B | $377.0M | $31.0M | $346.0M | 24.8% |
| 2023-04-01 | $1.6B | $130.0M | $35.0M | $95.0M | 6.0% |
| 2023-07-01 | $1.7B | $406.0M | $36.0M | $370.0M | 21.2% |
| 2023-09-30 | $1.9B | $462.0M | $37.0M | $425.0M | 22.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 102.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.9B | 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 Growth
Operating cash flow rose from both the prior quarter and the year-ago quarter, while capital expenditure remained nearly unchanged. This relationship was the primary factor behind the free cash flow increase and margin expansion.
The stronger operating cash flow directly lifted free cash flow and improved the conversion efficiency from revenue to cash.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose from the prior quarter and from a year ago, while capital expenditure stayed relatively stable. This drove free cash flow higher and expanded the free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Versus the same quarter one year earlier, all metrics showed similar improvement, with the margin strengthening notably.
Monitor the company's debt management and refinancing activities, as the filing indicates it maintains a capital structure with debt and equity and expects to meet obligations through internal funds or refinancing.