Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin were lower than the prior quarter but slightly higher than the same quarter last year.
- Operating cash flow was lower than the prior quarter but higher than the same quarter last year. Capital expenditure was slightly higher than both comparison periods, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year.
- Compared to the prior quarter, free cash flow and free cash flow margin weakened, driven by lower operating cash flow. Compared to the same quarter last year, free cash flow and free cash flow margin improved slightly, with operating cash flow higher and capital expenditure relatively stable.
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
$136.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$185.4M
Cash generated by operations before capital spending.
CapEx
$49.4M
Capital spending and related asset purchases.
FCF margin
5.0%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $2.7B | $185.4M | $49.4M | $136.0M | 5.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 87.0% | 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 Decline
Operating cash flow decreased from the prior quarter while revenue increased, leading to a lower free cash flow margin. This shift is the strongest observable driver of the quarter's cash conversion performance.
The decline in operating cash flow relative to revenue reduced free cash flow generation compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the same quarter last year. Capital expenditure was slightly higher than both comparison periods, resulting in free cash flow that was lower than the prior quarter but higher than the same quarter last year.
Compared to the prior quarter, free cash flow and free cash flow margin weakened, driven by lower operating cash flow. Compared to the same quarter last year, free cash flow and free cash flow margin improved slightly, with operating cash flow higher and capital expenditure relatively stable.
Monitor the trend in operating cash flow, as it declined from the prior quarter despite higher revenue.