Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was significantly higher than the prior quarter and moderately higher than the same quarter last year, driven by operating cash flow. The free cash flow margin improved compared to both periods.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow, capital expenditure, free cash flow, and free cash flow margin all strengthened relative to both comparison periods, indicating improved cash conversion.
- Compared to the immediately preceding quarter, free cash flow margin strengthened, driven by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow margin also improved, with operating cash flow higher and capital expenditure stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.6B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$6.0M
Capital spending and related asset purchases.
FCF margin
87.0%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $2.1B | $801.0M | $5.0M | $796.0M | 37.8% |
| 2022-09-30 | $2.9B | $964.0M | $6.0M | $958.0M | 33.2% |
| 2022-12-31 | $1.9B | $463.0M | $8.0M | $455.0M | 23.9% |
| 2023-03-31 | $1.8B | $1.6B | $6.0M | $1.6B | 87.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1351.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Operating Cash Flow Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, directly supporting free cash flow. Capital expenditure remained minimal and stable across all periods.
The increase in operating cash flow was the strongest observable driver of the improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow, capital expenditure, free cash flow, and free cash flow margin all strengthened relative to both comparison periods, indicating improved cash conversion.
Compared to the immediately preceding quarter, free cash flow margin strengthened, driven by higher operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow margin also improved, with operating cash flow higher and capital expenditure stable.
Monitor whether the high level of operating cash flow relative to revenue persists in subsequent quarters.