Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive and improved significantly from both the prior quarter and the same quarter last year, driven by a substantial increase in operating cash flow. Revenue grew modestly while capital expenditure remained relatively stable, resulting in a much higher free cash flow margin.
- Revenue increased slightly from the prior quarter, while operating cash flow rose sharply, leading to a much higher free cash flow and free cash flow margin. Capital expenditure was modest and did not materially affect the conversion.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow. Versus the same quarter one year earlier, free cash flow improved from negative to positive, with operating cash flow substantially higher and capital expenditure slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$795.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$453.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$491.2M
Cash generated by operations before capital spending.
CapEx
$37.7M
Capital spending and related asset purchases.
FCF margin
8.1%
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 | $4.7B | $45.4M | $49.1M | -$3.7M | -0.1% |
| 2023-03-31 | $5.0B | $294.4M | $32.3M | $262.1M | 5.3% |
| 2023-06-30 | $5.5B | $113.3M | $29.5M | $83.8M | 1.5% |
| 2023-09-30 | $5.6B | $491.2M | $37.7M | $453.5M | 8.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -511.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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 Surge
Operating cash flow increased substantially from the prior quarter and the year-ago quarter, while revenue grew only modestly. This was the strongest observable driver of the improvement in free cash flow and free cash flow margin.
The higher operating cash flow directly lifted free cash flow and margin, turning the year-ago negative free cash flow into a positive result.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased slightly from the prior quarter, while operating cash flow rose sharply, leading to a much higher free cash flow and free cash flow margin. Capital expenditure was modest and did not materially affect the conversion.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow. Versus the same quarter one year earlier, free cash flow improved from negative to positive, with operating cash flow substantially higher and capital expenditure slightly lower.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.