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, supported by higher operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was stable sequentially and higher year-over-year, while operating cash flow increased in both comparisons, driving free cash flow higher. Capital expenditure rose versus both periods, but the increase in operating cash flow more than offset the higher spending, resulting in an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and free cash flow margin were higher, with operating cash flow rising and capital expenditure also higher. Versus the same quarter one year earlier, free cash flow and margin were higher, driven by stronger operating cash flow despite a larger capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$699.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$897.0M
Cash generated by operations before capital spending.
CapEx
$198.0M
Capital spending and related asset purchases.
FCF margin
31.6%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $2.0B | $549.0M | $223.0M | $326.0M | 16.3% |
| 2023-06-30 | $2.2B | $183.0M | $166.0M | $17.0M | 0.8% |
| 2023-09-30 | $2.2B | $724.0M | $145.0M | $579.0M | 26.9% |
| 2023-12-31 | $2.2B | $897.0M | $198.0M | $699.0M | 31.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 Strength
Operating cash flow was higher sequentially and year-over-year, providing the primary support for the improvement in free cash flow. The free cash flow margin rose in both comparisons, reflecting the stronger cash generation relative to revenue.
The increase in operating cash flow was the strongest observable driver of the higher free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year-over-year, while operating cash flow increased in both comparisons, driving free cash flow higher. Capital expenditure rose versus both periods, but the increase in operating cash flow more than offset the higher spending, resulting in an improved free cash flow margin.
Compared to the prior quarter, free cash flow and free cash flow margin were higher, with operating cash flow rising and capital expenditure also higher. Versus the same quarter one year earlier, free cash flow and margin were higher, driven by stronger operating cash flow despite a larger capital expenditure.
Monitor the trend in capital expenditure, as it increased in both comparisons and could pressure free cash flow if operating cash flow growth slows.