Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from a negative position a year earlier, driving free cash flow to a positive margin. Revenue was slightly lower than the prior quarter but higher than the same quarter last year.
- Revenue was lower than the preceding quarter but higher than a year ago. Operating cash flow improved significantly from a negative level a year earlier, and after capital expenditure, free cash flow turned positive with a positive margin.
- Compared with the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all slightly lower. Compared with the same quarter a year earlier, revenue was higher, and operating cash flow, free cash flow, and margin improved from negative to positive, while capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$211.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$259.6M
Cash generated by operations before capital spending.
CapEx
$48.4M
Capital spending and related asset purchases.
FCF margin
8.0%
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 | $2.5B | $173.0M | $46.2M | $126.8M | 5.1% |
| 2022-09-30 | $2.5B | $647.9M | $46.6M | $601.3M | 23.6% |
| 2022-12-31 | $2.7B | $277.1M | $52.4M | $224.7M | 8.5% |
| 2023-03-31 | $2.6B | $259.6M | $48.4M | $211.2M | 8.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 185.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 recovery
Operating cash flow turned positive this quarter after being negative in the same quarter last year, which was the strongest observable driver of the free cash flow improvement.
This shift directly enabled free cash flow to become positive and achieve a positive margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the preceding quarter but higher than a year ago. Operating cash flow improved significantly from a negative level a year earlier, and after capital expenditure, free cash flow turned positive with a positive margin.
Compared with the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all slightly lower. Compared with the same quarter a year earlier, revenue was higher, and operating cash flow, free cash flow, and margin improved from negative to positive, while capital expenditure was higher.
Monitor whether operating cash flow can sustain its positive level after the prior year's negative quarter.