Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, revenue, operating cash flow, and free cash flow all decreased compared to both the prior quarter and the same quarter last year. The free cash flow margin also narrowed, reflecting a weaker cash conversion.
- Operating cash flow as a share of revenue was lower than in the preceding quarter and the year-ago period. After capital expenditure, free cash flow and its margin declined. Per the filing, the company's business model is not capital-intensive and targets management fees to cover operating expenses, with cash flows used for growth initiatives and dividends.
- Compared to the immediately preceding quarter, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were lower. The same pattern held when compared with the same quarter one year earlier, with each metric showing a decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$283.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$352.7M
Cash generated by operations before capital spending.
CapEx
$69.6M
Capital spending and related asset purchases.
FCF margin
20.5%
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 | $629.2M | $1.9B | $45.2M | $1.8B | 293.1% |
| 2022-09-30 | $1.1B | $982.9M | $85.4M | $897.5M | 84.8% |
| 2022-12-31 | $1.7B | $715.1M | $48.7M | $666.4M | 39.1% |
| 2023-03-31 | $1.4B | $352.7M | $69.6M | $283.2M | 20.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 330.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Cash conversion efficiency
Operating cash flow decreased at a faster rate than revenue, leading to a lower free cash flow margin.
This suggests a weakened ability to convert revenue into cash from operations.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was lower than in the preceding quarter and the year-ago period. After capital expenditure, free cash flow and its margin declined. Per the filing, the company's business model is not capital-intensive and targets management fees to cover operating expenses, with cash flows used for growth initiatives and dividends.
Compared to the immediately preceding quarter, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were lower. The same pattern held when compared with the same quarter one year earlier, with each metric showing a decline.
Monitor the trend in operating cash flow relative to revenue, as it declined more sharply than revenue in the current quarter.