Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved substantially versus both the prior quarter and the same quarter a year earlier, while the free cash flow margin strengthened. Revenue increased compared with the year-ago quarter but declined sequentially, yet cash conversion remained robust.
- Revenue in the current quarter was higher than the year-ago period but lower than the prior quarter. Operating cash flow, capital expenditure, and free cash flow all improved relative to both comparison periods, leading to a free cash flow margin that was higher than both the prior and year-ago quarters.
- Compared with the immediately preceding quarter, free cash flow strengthened considerably, while revenue was slightly lower. Versus the same quarter one year earlier, both revenue and free cash flow were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$863.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$314.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$328.0M
Cash generated by operations before capital spending.
CapEx
$13.3M
Capital spending and related asset purchases.
FCF margin
30.1%
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 | $927.6M | $253.6M | $14.1M | $239.5M | 25.8% |
| 2022-12-31 | $901.0M | $281.2M | $19.6M | $261.6M | 29.0% |
| 2023-03-31 | $1.1B | $60.0M | $12.0M | $48.0M | 4.3% |
| 2023-06-30 | $1.0B | $328.0M | $13.3M | $314.7M | 30.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 165.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Cash Conversion
Operating cash flow increased meaningfully from both the prior quarter and the year-ago quarter, driving free cash flow higher. The free cash flow margin also rose compared with both periods, indicating stronger cash generation from the revenue base.
The quarter's cash conversion was the strongest observable factor, directly lifting free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue in the current quarter was higher than the year-ago period but lower than the prior quarter. Operating cash flow, capital expenditure, and free cash flow all improved relative to both comparison periods, leading to a free cash flow margin that was higher than both the prior and year-ago quarters.
Compared with the immediately preceding quarter, free cash flow strengthened considerably, while revenue was slightly lower. Versus the same quarter one year earlier, both revenue and free cash flow were higher, and the free cash flow margin improved.
Monitor operating cash flow in the coming quarter for sustained conversion strength relative to reported revenue.