Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The company's filing indicates it expects sufficient liquidity from operations, cash, and borrowings to meet its obligations.
- Revenue was higher than both prior periods. Operating cash flow increased significantly, while capital expenditure decreased, leading to free cash flow that was higher than both comparisons. The free cash flow margin improved accordingly.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, and capital expenditure was lower. Versus the same quarter one year earlier, all metrics showed improvement, with operating cash flow and free cash flow notably higher and margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$523.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$170.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$175.5M
Cash generated by operations before capital spending.
CapEx
$5.5M
Capital spending and related asset purchases.
FCF margin
10.3%
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 | $1.7B | $457.4M | $7.1M | $450.3M | 26.1% |
| 2022-09-30 | $1.3B | -$204.5M | $5.5M | -$210.0M | -16.4% |
| 2022-12-31 | $1.3B | $123.1M | $10.4M | $112.7M | 8.7% |
| 2023-03-31 | $1.6B | $175.5M | $5.5M | $170.0M | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | 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 was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower, resulting in stronger free cash flow and margin.
The strong cash generation supported a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior periods. Operating cash flow increased significantly, while capital expenditure decreased, leading to free cash flow that was higher than both comparisons. The free cash flow margin improved accordingly.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were higher, and capital expenditure was lower. Versus the same quarter one year earlier, all metrics showed improvement, with operating cash flow and free cash flow notably higher and margin strengthened.
Monitor the level of capital expenditure, as it was lower in the current quarter and any increase could reduce free cash flow.