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. Free cash flow turned positive from a negative position a year ago but decreased sharply from the preceding quarter.
- Operating cash flow improved significantly from a negative level a year earlier but fell substantially from the prior quarter. Capital expenditure was lower than both comparison periods. The resulting free cash flow margin turned positive year over year but weakened markedly from the preceding quarter.
- Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, 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
$79.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$190.0M
Cash generated by operations before capital spending.
CapEx
$111.0M
Capital spending and related asset purchases.
FCF margin
2.3%
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 | $3.2B | $307.0M | $105.0M | $202.0M | 6.2% |
| 2022-09-30 | $3.2B | $470.0M | $150.0M | $320.0M | 10.1% |
| 2022-12-31 | $3.2B | $807.0M | $212.0M | $595.0M | 18.4% |
| 2023-03-31 | $3.4B | $190.0M | $111.0M | $79.0M | 2.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 25.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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 Volatility
Operating cash flow was substantially lower than the prior quarter despite higher revenue, and the free cash flow margin contracted sharply. The filing notes revenue growth across all segments, but no specific cash flow drivers are provided.
This divergence between revenue growth and cash generation is a key factor to watch in upcoming quarters.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved significantly from a negative level a year earlier but fell substantially from the prior quarter. Capital expenditure was lower than both comparison periods. The resulting free cash flow margin turned positive year over year but weakened markedly from the preceding quarter.
Compared to the immediately preceding quarter, revenue was higher while operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, and free cash flow margin improved from negative to positive.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined despite higher revenue compared to the prior quarter.