Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter after a negative prior quarter, driven by a sharp improvement in operating cash flow. Revenue was stable sequentially but lower than the same quarter last year.
- Operating cash flow rose significantly from the prior quarter, while capital expenditure decreased, resulting in a positive free cash flow margin. Compared to the year-ago quarter, operating cash flow and free cash flow margin were lower.
- Revenue was stable versus the prior quarter but lower than the same quarter last year. Operating cash flow improved markedly from the prior quarter but was lower than the year-ago quarter. Free cash flow margin turned positive from negative sequentially, yet remained below the year-ago level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$470.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$138.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$189.6M
Cash generated by operations before capital spending.
CapEx
$51.4M
Capital spending and related asset purchases.
FCF margin
6.6%
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 |
|---|---|---|---|---|---|
| 2022-10-01 | $2.3B | $220.8M | $76.4M | $144.4M | 6.2% |
| 2022-12-31 | $2.0B | $345.8M | $94.9M | $250.9M | 12.4% |
| 2023-04-01 | $2.1B | $1.9M | $64.5M | -$62.6M | -3.0% |
| 2023-07-01 | $2.1B | $189.6M | $51.4M | $138.2M | 6.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 137.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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 increased substantially from the prior quarter, which was the primary factor behind the swing from negative to positive free cash flow.
This improvement directly enabled positive free cash flow and a positive margin in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose significantly from the prior quarter, while capital expenditure decreased, resulting in a positive free cash flow margin. Compared to the year-ago quarter, operating cash flow and free cash flow margin were lower.
Revenue was stable versus the prior quarter but lower than the same quarter last year. Operating cash flow improved markedly from the prior quarter but was lower than the year-ago quarter. Free cash flow margin turned positive from negative sequentially, yet remained below the year-ago level.
Monitor whether operating cash flow can sustain its improved level in future quarters.