Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was stable compared to the same quarter last year, while the margin narrowed slightly. Operating cash flow improved from the prior quarter, supporting a higher free cash flow.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased from the previous quarter and was roughly level with the year-ago period. Capital expenditure was higher than both comparison periods, resulting in free cash flow that was higher than the prior quarter but slightly lower than the year-ago quarter. The free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
- Compared to the prior quarter, revenue decreased while operating cash flow and free cash flow both increased, leading to a stronger free cash flow margin. Versus the same quarter last year, revenue was higher but free cash flow was slightly lower, with a weaker margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$619.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$688.0M
Cash generated by operations before capital spending.
CapEx
$69.0M
Capital spending and related asset purchases.
FCF margin
19.5%
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 | $2.7B | $1.0B | $58.0M | $988.0M | 36.6% |
| 2022-12-31 | $3.1B | $1.0B | $70.0M | $972.0M | 31.1% |
| 2023-03-31 | $3.9B | $443.0M | $76.0M | $367.0M | 9.5% |
| 2023-06-30 | $3.2B | $688.0M | $69.0M | $619.0M | 19.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 116.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.4B | 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 increased from the prior quarter, driving a higher free cash flow despite lower revenue. This was the strongest observable driver of the quarter's cash generation.
The improvement in operating cash flow more than offset the higher capital expenditure, resulting in a stronger free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased from the previous quarter and was roughly level with the year-ago period. Capital expenditure was higher than both comparison periods, resulting in free cash flow that was higher than the prior quarter but slightly lower than the year-ago quarter. The free cash flow margin improved from the prior quarter but weakened compared to the same quarter last year.
Compared to the prior quarter, revenue decreased while operating cash flow and free cash flow both increased, leading to a stronger free cash flow margin. Versus the same quarter last year, revenue was higher but free cash flow was slightly lower, with a weaker margin.
Monitor the trend in capital expenditure, which was higher in the current quarter compared to both the prior quarter and the same quarter last year.