Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were lower than the prior quarter but higher than the same quarter last year. The free cash flow margin weakened sequentially but improved year over year.
- Revenue was stable compared with the prior quarter and higher than a year ago. Operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than the prior quarter but higher than the same quarter last year.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared with the same quarter one year earlier, all metrics were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$307.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$335.2M
Cash generated by operations before capital spending.
CapEx
$27.8M
Capital spending and related asset purchases.
FCF margin
18.7%
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 | $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% |
| 2023-06-30 | $1.6B | $335.2M | $27.8M | $307.4M | 18.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | 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.
Improved working capital management and higher net income
Per the filing, the increase in cash provided by operating activities for the first six months of the year was primarily due to improved working capital management and higher net income.
This supported higher free cash flow compared with the same period last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared with the prior quarter and higher than a year ago. Operating cash flow converted into free cash flow after capital expenditure, resulting in a free cash flow margin that was lower than the prior quarter but higher than the same quarter last year.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared with the same quarter one year earlier, all metrics were higher, and the free cash flow margin improved.
Monitor the trend in capital expenditure, which was higher than the prior quarter but similar to the year-ago quarter.