Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but higher than the same quarter last year. Free cash flow improved from a negative position a year ago, though it weakened relative to the preceding quarter.
- Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure was slightly lower than the prior quarter and higher than a year ago, resulting in free cash flow that was positive and improved year-over-year but lower than the prior quarter.
- Compared to the prior quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter last year, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$981.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$305.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$721.0M
Cash generated by operations before capital spending.
CapEx
$415.6M
Capital spending and related asset purchases.
FCF margin
11.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.5B | -$145.9M | $270.9M | -$416.8M | -28.2% |
| 2022-09-30 | $2.1B | $895.3M | $313.3M | $582.0M | 27.8% |
| 2022-12-31 | $2.6B | $956.8M | $445.7M | $511.1M | 19.5% |
| 2023-03-31 | $2.6B | $721.0M | $415.6M | $305.4M | 11.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 24.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Cash Flow Improvement
Operating cash flow and free cash flow both turned positive and were higher than the same quarter last year, with free cash flow margin shifting from negative to positive.
This improvement in cash generation from the prior year is the strongest observable driver of the quarter's performance.
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 a year ago. Capital expenditure was slightly lower than the prior quarter and higher than a year ago, resulting in free cash flow that was positive and improved year-over-year but lower than the prior quarter.
Compared to the prior quarter, revenue was stable while operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter last year, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
Monitor whether operating cash flow can sustain its improvement relative to the year-ago level, given the sequential decline from the prior quarter.