Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, driven by higher operating cash flow amid stable revenue. The free cash flow margin widened as capital expenditure remained relatively consistent.
- Revenue was stable compared with the prior quarter and higher than a year ago. Operating cash flow increased from both periods, while capital expenditure was slightly lower than the preceding quarter and the year-ago quarter. Free cash flow and its margin both strengthened sequentially and year-over-year.
- Compared with the immediately preceding quarter, free cash flow and margin were higher due to improved operating cash flow. Relative to the same quarter one year earlier, both free cash flow and margin were also higher, supported by a modest revenue increase and stronger cash generation.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$420.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$477.0M
Cash generated by operations before capital spending.
CapEx
$57.0M
Capital spending and related asset purchases.
FCF margin
24.6%
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 | $2.0B | $452.0M | $121.0M | $331.0M | 16.4% |
| 2023-03-31 | $1.6B | $349.0M | $62.0M | $287.0M | 17.4% |
| 2023-06-30 | $1.7B | $329.0M | $60.0M | $269.0M | 15.9% |
| 2023-09-30 | $1.7B | $477.0M | $57.0M | $420.0M | 24.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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.
Stronger Operating Cash Flow
Operating cash flow rose from both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin. Revenue was stable sequentially and slightly higher year-over-year, indicating the cash generation improved without a proportional increase in revenue.
Free cash flow and margin both reached their highest levels among the three reported quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared with the prior quarter and higher than a year ago. Operating cash flow increased from both periods, while capital expenditure was slightly lower than the preceding quarter and the year-ago quarter. Free cash flow and its margin both strengthened sequentially and year-over-year.
Compared with the immediately preceding quarter, free cash flow and margin were higher due to improved operating cash flow. Relative to the same quarter one year earlier, both free cash flow and margin were also higher, supported by a modest revenue increase and stronger cash generation.
Monitor whether operating cash flow can sustain its elevated level relative to recent quarters.