Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow significantly improved from the prior quarter, driving a stronger free cash flow margin despite similar revenue. Capital expenditure remained stable, while free cash flow was slightly lower than the same quarter a year ago.
- Revenue remained stable quarter over quarter, but operating cash flow improved substantially, resulting in a higher free cash flow margin. The conversion from revenue to free cash flow strengthened compared to the prior quarter, while the margin was slightly above the same quarter last year.
- Compared to the preceding quarter, operating cash flow and free cash flow were materially higher with a much improved free cash flow margin. Versus the same quarter a year earlier, revenue was lower while operating cash flow and free cash flow were slightly lower, though the free cash flow margin was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$735.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$788.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$932.0M
Cash generated by operations before capital spending.
CapEx
$144.0M
Capital spending and related asset purchases.
FCF margin
21.5%
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 | $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% |
| 2023-06-30 | $3.7B | $932.0M | $144.0M | $788.0M | 21.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 437.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | 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 Surge
Operating cash flow in the current quarter was markedly higher than the prior quarter, even though revenue was virtually unchanged. This was the strongest observable factor behind the improvement in free cash flow.
The jump in operating cash flow drove free cash flow to a level materially above the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable quarter over quarter, but operating cash flow improved substantially, resulting in a higher free cash flow margin. The conversion from revenue to free cash flow strengthened compared to the prior quarter, while the margin was slightly above the same quarter last year.
Compared to the preceding quarter, operating cash flow and free cash flow were materially higher with a much improved free cash flow margin. Versus the same quarter a year earlier, revenue was lower while operating cash flow and free cash flow were slightly lower, though the free cash flow margin was slightly higher.
Monitor whether the quarter's elevated free cash flow margin is sustained or reverts toward the lower level seen in the preceding quarter.