Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased from the prior quarter but increased from the same quarter last year. Operating cash flow was lower than the preceding quarter yet significantly higher than a year earlier, resulting in positive free cash flow compared to a negative figure a year ago.
- Operating cash flow as a percentage of revenue was lower than the prior quarter but higher than the year-ago quarter. After deducting capital expenditure, free cash flow margin turned positive, a marked improvement from the negative margin one year earlier.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Versus the same quarter one year ago, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$151.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$461.0M
Cash generated by operations before capital spending.
CapEx
$310.0M
Capital spending and related asset purchases.
FCF margin
2.6%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $5.0B | $321.0M | $226.0M | $95.0M | 1.9% |
| 2022-09-30 | $5.4B | $597.0M | $226.0M | $371.0M | 6.9% |
| 2022-12-31 | $5.9B | $898.0M | $269.0M | $629.0M | 10.7% |
| 2023-03-31 | $5.7B | $461.0M | $310.0M | $151.0M | 2.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 26.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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 improvement
Operating cash flow increased substantially from the year-ago quarter, though it decreased from the prior quarter. This improvement was the primary factor behind the shift from negative to positive free cash flow.
The stronger operating cash flow enabled the company to generate positive free cash flow despite higher capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was lower than the prior quarter but higher than the year-ago quarter. After deducting capital expenditure, free cash flow margin turned positive, a marked improvement from the negative margin one year earlier.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all lower, while capital expenditure was higher. Versus the same quarter one year ago, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved from negative to positive.
The level of cash and cash equivalents, which declined from the prior quarter end as stated in the liquidity discussion, is a concrete item to monitor.