Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher than the same quarter last year. Free cash flow margin improved compared to both the prior quarter and the year-ago quarter, driven by lower capital expenditure.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the operating cash flow margin, indicating efficient conversion of revenue into free cash flow.
- Compared to the prior quarter, revenue was stable, operating cash flow was slightly higher, capital expenditure was slightly higher, and free cash flow was slightly higher. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly higher, capital expenditure was lower, and free cash flow was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$830.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$196.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$252.4M
Cash generated by operations before capital spending.
CapEx
$56.3M
Capital spending and related asset purchases.
FCF margin
29.0%
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 | $651.6M | $365.3M | $61.2M | $304.1M | 46.7% |
| 2023-06-30 | $675.0M | $192.9M | $58.2M | $134.7M | 20.0% |
| 2023-09-30 | $677.6M | $250.1M | $54.3M | $195.8M | 28.9% |
| 2023-12-31 | $677.2M | $252.4M | $56.3M | $196.1M | 29.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Capital Expenditure
Capital expenditure was lower than the same quarter last year, which directly supported higher free cash flow and an improved free cash flow margin.
The reduction in capital expenditure was the strongest observable driver of the free cash flow improvement versus the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin was higher than the operating cash flow margin, indicating efficient conversion of revenue into free cash flow.
Compared to the prior quarter, revenue was stable, operating cash flow was slightly higher, capital expenditure was slightly higher, and free cash flow was slightly higher. Compared to the same quarter last year, revenue was higher, operating cash flow was slightly higher, capital expenditure was lower, and free cash flow was higher.
Monitor capital expenditure levels, as the decrease from the year-ago quarter was a key factor in the free cash flow improvement.