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. Operating cash flow and free cash flow both improved sequentially and year-over-year, leading to a higher free cash flow margin.
- Revenue remained unchanged from the prior quarter, while operating cash flow increased, resulting in a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further supporting free cash flow.
- Compared to the prior quarter, revenue was stable, operating cash flow and free cash flow were higher, and free cash flow margin improved. Versus the same quarter last year, all metrics were higher, with the largest relative improvement in free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$40.6M
Capital spending and related asset purchases.
FCF margin
49.4%
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 | $2.3B | $1.1B | $33.6M | $1.0B | 45.4% |
| 2023-03-31 | $2.4B | $899.9M | $42.1M | $857.8M | 36.1% |
| 2023-06-30 | $2.5B | $1.1B | $59.6M | $1.1B | 43.1% |
| 2023-09-30 | $2.5B | $1.3B | $40.6M | $1.2B | 49.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 118.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Strength
Operating cash flow increased both sequentially and year-over-year, while revenue was stable sequentially and higher year-over-year. This improvement in cash generation efficiency was the strongest observable driver of the higher free cash flow margin.
Higher operating cash flow relative to revenue directly lifted free cash flow and margin without requiring additional capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained unchanged from the prior quarter, while operating cash flow increased, resulting in a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, further supporting free cash flow.
Compared to the prior quarter, revenue was stable, operating cash flow and free cash flow were higher, and free cash flow margin improved. Versus the same quarter last year, all metrics were higher, with the largest relative improvement in free cash flow.
Monitor the trend in capital expenditure, which declined this quarter after being higher in both comparison periods.