Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to the prior quarter and the same quarter last year. However, operating cash flow weakened significantly, leading to a much lower free cash flow and margin.
- Operating cash flow of the current quarter was lower than both the preceding quarter and the year-ago quarter, while capital expenditure was higher. This resulted in a free cash flow that was lower than both comparative periods, with a weakened free cash flow margin.
- Compared to the immediately preceding quarter, revenue was slightly higher but operating cash flow, free cash flow, and margin were all lower, with capital expenditure higher. Versus the same quarter one year earlier, revenue was stable, while operating cash flow, free cash flow, and margin were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$730.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$52.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$184.0M
Cash generated by operations before capital spending.
CapEx
$132.0M
Capital spending and related asset purchases.
FCF margin
1.4%
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 | $3.9B | $937.0M | $154.0M | $783.0M | 20.0% |
| 2022-09-30 | $3.7B | -$260.0M | $152.0M | -$412.0M | -11.1% |
| 2022-12-31 | $3.6B | $405.0M | $98.0M | $307.0M | 8.4% |
| 2023-03-31 | $3.7B | $184.0M | $132.0M | $52.0M | 1.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 29.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 in the current quarter was lower than both the prior quarter and the year-ago quarter, despite stable revenue. This decline was the most notable change among the cash flow metrics.
The reduction in operating cash flow directly caused a significant drop in free cash flow and margin, making it the key variable to monitor.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the current quarter was lower than both the preceding quarter and the year-ago quarter, while capital expenditure was higher. This resulted in a free cash flow that was lower than both comparative periods, with a weakened free cash flow margin.
Compared to the immediately preceding quarter, revenue was slightly higher but operating cash flow, free cash flow, and margin were all lower, with capital expenditure higher. Versus the same quarter one year earlier, revenue was stable, while operating cash flow, free cash flow, and margin were lower, and capital expenditure was higher.
Monitor the trend of operating cash flow, as its decline was the primary factor behind the weakened free cash flow.