Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was similar to the prior year, but operating cash flow was slightly lower and capital expenditure slightly higher, leading to a modest decline in free cash flow. The free cash flow margin remained stable compared to the same quarter last year, though it was slightly lower than the preceding quarter.
- Revenue generated operating cash flow, which after capital expenditure produced free cash flow at a margin that was slightly lower than the prior quarter but unchanged from the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher, though the margin was slightly lower. Versus the same quarter one year earlier, revenue was stable, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower, while the margin was unchanged.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$441.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$536.4M
Cash generated by operations before capital spending.
CapEx
$95.4M
Capital spending and related asset purchases.
FCF margin
14.4%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $3.3B | $576.0M | $121.0M | $455.0M | 13.8% |
| 2022-12-31 | $3.2B | $705.3M | $93.6M | $611.7M | 18.9% |
| 2023-03-31 | $3.0B | $532.4M | $97.7M | $434.7M | 14.6% |
| 2023-06-30 | $3.1B | $536.4M | $95.4M | $441.0M | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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.
Capital Expenditure
Capital expenditure was higher compared to the same quarter last year, while revenue was stable. This higher spending reduced free cash flow despite similar operating cash flow generation.
The higher capital expenditure directly reduced free cash flow relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated operating cash flow, which after capital expenditure produced free cash flow at a margin that was slightly lower than the prior quarter but unchanged from the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow was higher, though the margin was slightly lower. Versus the same quarter one year earlier, revenue was stable, operating cash flow was lower, capital expenditure was higher, and free cash flow was lower, while the margin was unchanged.
Monitor the level of capital expenditure, as it increased year-over-year and contributed to a lower free cash flow.