Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened sharply versus both the prior quarter and the same quarter last year. The improvement was driven by higher operating cash flow relative to revenue, while capital spending also increased.
- Operating cash flow rose notably compared to revenue, resulting in a higher free cash flow margin. Capital expenditure increased but free cash flow still grew substantially.
- Compared to the prior quarter, all metrics were higher: revenue, operating cash flow, capital expenditure, free cash flow, and margin. Versus one year ago, revenue and cash flows were also higher, with margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$515.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$658.0M
Cash generated by operations before capital spending.
CapEx
$143.0M
Capital spending and related asset purchases.
FCF margin
14.3%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $3.6B | $658.0M | $143.0M | $515.0M | 14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 190.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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 Surge
Operating cash flow increased significantly from the prior quarter and year-ago period, outpacing revenue growth.
This drove the notable expansion in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose notably compared to revenue, resulting in a higher free cash flow margin. Capital expenditure increased but free cash flow still grew substantially.
Compared to the prior quarter, all metrics were higher: revenue, operating cash flow, capital expenditure, free cash flow, and margin. Versus one year ago, revenue and cash flows were also higher, with margin improved.
Monitor the level of capital expenditure, which increased from both the prior quarter and the same quarter last year.