Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from the prior quarter, while operating cash flow decreased, and the free cash flow margin weakened. Compared to the same quarter a year earlier, revenue was stable, free cash flow was higher, and the margin improved slightly.
- Operating cash flow as a share of revenue decreased from the prior quarter, while capital expenditure increased, resulting in a lower free cash flow margin. The conversion of revenue to free cash flow was weaker than the prior quarter but stronger than the year-ago quarter.
- Compared to the prior quarter, free cash flow was lower despite higher revenue, as capital expenditure more than offset the increase in operating cash flow. Relative to the year-ago quarter, free cash flow was higher, supported by lower capital expenditure and slightly higher operating cash flow.
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
$342.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$448.0M
Cash generated by operations before capital spending.
CapEx
$106.0M
Capital spending and related asset purchases.
FCF margin
16.8%
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 | $1.6B | $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% |
| 2023-12-31 | $2.0B | $448.0M | $106.0M | $342.0M | 16.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 73.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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.
Capital Expenditure Increase
Capital expenditure was higher than the prior quarter, which was the primary factor reducing free cash flow. The company's filing notes that it intends to use operating cash flows to invest in growing its business.
Higher capital expenditure lowered free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue decreased from the prior quarter, while capital expenditure increased, resulting in a lower free cash flow margin. The conversion of revenue to free cash flow was weaker than the prior quarter but stronger than the year-ago quarter.
Compared to the prior quarter, free cash flow was lower despite higher revenue, as capital expenditure more than offset the increase in operating cash flow. Relative to the year-ago quarter, free cash flow was higher, supported by lower capital expenditure and slightly higher operating cash flow.
Monitor the trend of capital expenditure, as it directly influenced free cash flow this quarter.