Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable versus the prior quarter and higher year over year. Operating cash flow and free cash flow both improved markedly year over year, while free cash flow margin strengthened compared with both the preceding quarter and the same quarter last year.
- Revenue remained steady, but operating cash flow increased substantially, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter and slightly below the year-ago level, supporting the conversion of revenue into free cash flow.
- Compared with the immediately preceding quarter, operating cash flow was slightly higher while capital expenditure was lower, resulting in improved free cash flow and free cash flow margin. Versus the same quarter one year earlier, operating cash flow and free cash flow were significantly higher, and free cash flow margin strengthened.
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
$366.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$386.5M
Cash generated by operations before capital spending.
CapEx
$20.0M
Capital spending and related asset purchases.
FCF margin
22.9%
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 | $235.9M | $26.2M | $209.7M | 13.8% |
| 2022-09-30 | $1.6B | $327.1M | $28.3M | $298.8M | 19.3% |
| 2022-12-31 | $1.6B | $385.0M | $58.2M | $326.8M | 20.1% |
| 2023-03-31 | $1.6B | $386.5M | $20.0M | $366.5M | 22.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | 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 Improvement
Operating cash flow rose versus both the prior quarter and the same quarter last year, with the year-over-year increase particularly notable. This was the strongest observable driver of free cash flow performance.
Higher operating cash flow directly lifted free cash flow and free cash flow margin, despite stable revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained steady, but operating cash flow increased substantially, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter and slightly below the year-ago level, supporting the conversion of revenue into free cash flow.
Compared with the immediately preceding quarter, operating cash flow was slightly higher while capital expenditure was lower, resulting in improved free cash flow and free cash flow margin. Versus the same quarter one year earlier, operating cash flow and free cash flow were significantly higher, and free cash flow margin strengthened.
Monitor the trend in capital expenditure, as the current level is lower than both prior periods and could signal a change in investment intensity.