Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Free cash flow improved sequentially but was slightly lower than the year-ago period, with the margin showing a similar pattern.
- Operating cash flow increased from the prior quarter, while capital expenditure decreased, leading to higher free cash flow and an improved free cash flow margin. Compared to the same quarter last year, operating cash flow was higher, but capital expenditure also rose, resulting in a slightly lower free cash flow margin.
- Compared to the immediately preceding quarter, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin improved. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow and margin weakened slightly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$800.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$255.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$278.2M
Cash generated by operations before capital spending.
CapEx
$23.0M
Capital spending and related asset purchases.
FCF margin
18.2%
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 |
|---|---|---|---|---|---|
| 2023-01-01 | $1.4B | $237.7M | $34.1M | $203.6M | 14.4% |
| 2023-04-02 | $1.4B | $203.0M | $24.4M | $178.6M | 12.9% |
| 2023-07-02 | $1.4B | $190.5M | $27.3M | $163.2M | 11.5% |
| 2023-10-01 | $1.4B | $278.2M | $23.0M | $255.2M | 18.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Operating Cash Flow Improvement
Operating cash flow was higher than the prior quarter, which was the strongest observable driver of the sequential improvement in free cash flow and margin.
This drove free cash flow and margin higher compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased from the prior quarter, while capital expenditure decreased, leading to higher free cash flow and an improved free cash flow margin. Compared to the same quarter last year, operating cash flow was higher, but capital expenditure also rose, resulting in a slightly lower free cash flow margin.
Compared to the immediately preceding quarter, revenue was stable, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin improved. Compared to the same quarter one year earlier, revenue was stable, operating cash flow was higher, capital expenditure was higher, and free cash flow and margin weakened slightly.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased year-over-year and affected free cash flow conversion.