Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, driven by a higher free cash flow margin. Operating cash flow rose year over year while capital expenditure increased sequentially.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow decreased sequentially but increased year over year. Capital expenditure fell from the prior quarter but rose compared to the same quarter last year. Free cash flow and free cash flow margin improved both sequentially and year over year, indicating stronger cash conversion efficiency.
- Compared to the prior quarter, revenue and operating cash flow were lower, but free cash flow and free cash flow margin were higher due to a larger reduction in capital expenditure. Versus the same quarter last year, all metrics except capital expenditure were higher, with free cash flow margin improving.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$664.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$275.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$481.6M
Cash generated by operations before capital spending.
CapEx
$206.3M
Capital spending and related asset purchases.
FCF margin
15.0%
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 | $1.6B | $221.3M | $193.6M | $27.7M | 1.7% |
| 2023-06-30 | $2.1B | $286.2M | $161.0M | $125.2M | 5.9% |
| 2023-09-30 | $2.2B | $547.7M | $311.7M | $236.0M | 10.8% |
| 2023-12-31 | $1.8B | $481.6M | $206.3M | $275.3M | 15.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 121.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.9B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Expansion
The free cash flow margin rose to a higher level than both the prior quarter and the same quarter last year, reflecting improved conversion of revenue into free cash flow. This occurred even as revenue declined sequentially.
The higher free cash flow margin was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow decreased sequentially but increased year over year. Capital expenditure fell from the prior quarter but rose compared to the same quarter last year. Free cash flow and free cash flow margin improved both sequentially and year over year, indicating stronger cash conversion efficiency.
Compared to the prior quarter, revenue and operating cash flow were lower, but free cash flow and free cash flow margin were higher due to a larger reduction in capital expenditure. Versus the same quarter last year, all metrics except capital expenditure were higher, with free cash flow margin improving.
Monitor the trajectory of capital expenditure, as it decreased sharply from the prior quarter but remained above the year-ago level.