Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow in the current quarter was higher than both the prior quarter and the same quarter a year ago. Operating cash flow remained stable sequentially while revenue increased, and the free cash flow margin improved markedly from the year-ago period.
- Revenue was higher than the prior quarter, but operating cash flow was unchanged, which led to a lower free cash flow margin sequentially. Capital expenditure was lower than the prior quarter, helping free cash flow increase slightly. Compared to a year ago, operating cash flow was substantially higher, and free cash flow and margin both improved.
- Relative to the prior quarter, revenue increased while operating cash flow was flat, resulting in a lower free cash flow margin; capital expenditure decreased, which helped free cash edge higher. Versus the same quarter a year earlier, revenue was unchanged, but operating cash flow and free cash flow were both higher, and the margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$336.0M
Capital spending and related asset purchases.
FCF margin
25.6%
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 | $4.0B | $393.0M | $392.0M | $1.0M | 0.0% |
| 2023-03-31 | $3.1B | $1.4B | $484.0M | $951.0M | 30.6% |
| 2023-06-30 | $3.0B | $1.6B | $442.0M | $1.1B | 37.5% |
| 2023-09-30 | $4.8B | $1.6B | $336.0M | $1.2B | 25.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 243.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | 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
Operating cash flow was unchanged from the prior quarter and higher than the same quarter a year earlier, providing a consistent base for free cash flow generation.
Free cash flow was higher than both the prior quarter and the year-ago quarter, and the free cash flow margin improved substantially from the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, but operating cash flow was unchanged, which led to a lower free cash flow margin sequentially. Capital expenditure was lower than the prior quarter, helping free cash flow increase slightly. Compared to a year ago, operating cash flow was substantially higher, and free cash flow and margin both improved.
Relative to the prior quarter, revenue increased while operating cash flow was flat, resulting in a lower free cash flow margin; capital expenditure decreased, which helped free cash edge higher. Versus the same quarter a year earlier, revenue was unchanged, but operating cash flow and free cash flow were both higher, and the margin was higher.
The stability of operating cash flow relative to revenue changes, given that sequential revenue growth did not translate into higher operating cash flow.