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 both improved significantly compared to the prior quarter and the same quarter last year, with free cash flow turning positive. The free cash flow margin also strengthened, reflecting higher revenue and improved cash conversion.
- Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow increased substantially, and after accounting for capital expenditure, free cash flow turned positive, leading to a higher free cash flow margin.
- Compared to the prior quarter, all metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the year-ago quarter, revenue and operating cash flow were higher, and free cash flow shifted from negative to positive, while the margin improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$310.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$384.0M
Cash generated by operations before capital spending.
CapEx
$74.0M
Capital spending and related asset purchases.
FCF margin
4.6%
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 | $5.5B | $790.0M | $91.0M | $699.0M | 12.8% |
| 2022-12-31 | $2.0B | $1.1B | $104.0M | $1.0B | 51.7% |
| 2023-03-31 | $4.5B | $120.0M | $70.0M | $50.0M | 1.1% |
| 2023-06-30 | $6.7B | $384.0M | $74.0M | $310.0M | 4.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 133.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Cash Conversion
The increase in operating cash flow outpaced the rise in capital expenditure, resulting in a substantial improvement in free cash flow. Revenue was also higher, supporting the larger cash generation.
Free cash flow turned positive and the margin improved, indicating stronger cash conversion efficiency in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow increased substantially, and after accounting for capital expenditure, free cash flow turned positive, leading to a higher free cash flow margin.
Compared to the prior quarter, all metrics improved: revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the year-ago quarter, revenue and operating cash flow were higher, and free cash flow shifted from negative to positive, while the margin improved from negative to positive.
Monitor the trajectory of free cash flow margin, as it improved from negative to positive but remains relatively low compared to revenue.