Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow turned positive, resulting in positive free cash flow and margin.
- Higher revenue combined with a significant improvement in operating cash flow and a lower capital expenditure relative to the prior quarter drove free cash flow positive. The free cash flow margin improved from negative to positive.
- Compared to the prior quarter, revenue was higher, operating cash flow improved from negative to positive, capital expenditure was lower, and free cash flow turned positive. Versus the same quarter last year, revenue was higher, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$313.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$535.0M
Cash generated by operations before capital spending.
CapEx
$222.0M
Capital spending and related asset purchases.
FCF margin
6.0%
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 | $4.6B | $437.0M | $212.0M | $225.0M | 4.9% |
| 2022-12-31 | $4.6B | $933.0M | $178.0M | $755.0M | 16.3% |
| 2023-03-31 | $4.8B | -$9.0M | $269.0M | -$278.0M | -5.8% |
| 2023-06-30 | $5.2B | $535.0M | $222.0M | $313.0M | 6.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.3% | 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 recovery
Operating cash flow improved from negative in the prior quarter and from a lower positive amount in the year-ago quarter to a substantially higher positive figure. This was the primary factor behind the swing to positive free cash flow.
The improvement in operating cash flow enabled the company to generate positive free cash flow after two consecutive quarters of negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Higher revenue combined with a significant improvement in operating cash flow and a lower capital expenditure relative to the prior quarter drove free cash flow positive. The free cash flow margin improved from negative to positive.
Compared to the prior quarter, revenue was higher, operating cash flow improved from negative to positive, capital expenditure was lower, and free cash flow turned positive. Versus the same quarter last year, revenue was higher, operating cash flow was higher, capital expenditure was slightly higher, and free cash flow improved from negative to positive.
Monitor the level of capital expenditure relative to operating cash flow, as it remained stable while operating cash flow increased.