Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow reached a higher level compared to the prior quarter, supported by improved operating cash flow. Revenue remained stable quarter over quarter, while the free cash flow margin rose.
- Revenue was stable versus the prior quarter, while operating cash flow increased, driving free cash flow higher. The free cash flow margin improved, reflecting a stronger conversion of revenue into free cash flow.
- Compared to the immediate prior quarter, free cash flow and free cash flow margin both improved. Versus the same quarter one year earlier, revenue was higher but free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$567.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$361.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$455.0M
Cash generated by operations before capital spending.
CapEx
$94.0M
Capital spending and related asset purchases.
FCF margin
17.0%
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 | $1.4B | -$19.0M | $49.0M | -$68.0M | -4.7% |
| 2023-06-30 | $1.7B | $28.0M | $53.0M | -$25.0M | -1.5% |
| 2023-09-30 | $2.1B | $373.0M | $74.0M | $299.0M | 14.4% |
| 2023-12-31 | $2.1B | $455.0M | $94.0M | $361.0M | 17.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger operating cash flow
Operating cash flow increased from the prior quarter and from the same quarter one year earlier, supporting higher free cash flow despite higher capital expenditure.
The improvement in operating cash flow was the strongest observable factor driving free cash flow higher.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter, while operating cash flow increased, driving free cash flow higher. The free cash flow margin improved, reflecting a stronger conversion of revenue into free cash flow.
Compared to the immediate prior quarter, free cash flow and free cash flow margin both improved. Versus the same quarter one year earlier, revenue was higher but free cash flow margin was lower.
Monitor capital expenditure levels, which increased from both the prior quarter and the same quarter last year.