Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and its margin improved markedly versus the prior quarter and the year-ago period. Operating cash flow increased while capital expenditure declined relative to the prior quarter.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased significantly, and with a slight reduction in capital expenditure, free cash flow rose substantially, resulting in an improved free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow was higher, supported by a higher operating cash flow and a lower capital expenditure. Relative to the same quarter one year earlier, free cash flow and margin were also higher, reflecting higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$501.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$143.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$161.1M
Cash generated by operations before capital spending.
CapEx
$17.7M
Capital spending and related asset purchases.
FCF margin
15.7%
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 | $913.7M | $158.0M | $16.9M | $141.1M | 15.4% |
| 2022-12-31 | $861.5M | $192.4M | $22.5M | $169.9M | 19.7% |
| 2023-03-31 | $923.0M | $69.0M | $22.3M | $46.7M | 5.1% |
| 2023-06-30 | $912.5M | $161.1M | $17.7M | $143.4M | 15.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | 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 Growth
Operating cash flow increased substantially compared to both the prior quarter and the year-ago quarter, providing the primary boost to free cash flow. This occurred even as revenue was slightly lower sequentially.
The higher operating cash flow was the strongest observable factor in the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased significantly, and with a slight reduction in capital expenditure, free cash flow rose substantially, resulting in an improved free cash flow margin.
Compared to the immediately preceding quarter, free cash flow was higher, supported by a higher operating cash flow and a lower capital expenditure. Relative to the same quarter one year earlier, free cash flow and margin were also higher, reflecting higher revenue and operating cash flow.
Capital expenditure levels, as they directly affect the conversion of operating cash flow into free cash flow.