Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined compared to the prior quarter and the same quarter a year ago, but operating cash flow remained higher than the year-ago level. Free cash flow margin weakened sequentially yet improved from the year-ago period, reflecting mixed performance.
- Operating cash flow exceeded revenue, enabling a free cash flow margin above one hundred percent. Capital expenditure was lower than the prior quarter but higher than a year ago, resulting in free cash flow that was slightly lower than the year-ago figure.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow all decreased. Relative to the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly lower, yielding a mixed year-over-year comparison.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$265.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$606.0M
Cash generated by operations before capital spending.
CapEx
$341.0M
Capital spending and related asset purchases.
FCF margin
177.9%
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 | $167.0M | $779.0M | $303.0M | $476.0M | 285.0% |
| 2022-09-30 | $178.0M | $701.0M | $337.0M | $364.0M | 204.5% |
| 2022-12-31 | $186.0M | $840.0M | $389.0M | $451.0M | 242.5% |
| 2023-03-31 | $149.0M | $606.0M | $341.0M | $265.0M | 177.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 63.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 228.9% | 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.
Long-term tenant contracts
The filing notes that the company's core business generates revenues under long-term tenant contracts, a structure that can support recurring cash flows.
This structure may help explain the relatively high free cash flow margin compared to the revenue level.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue, enabling a free cash flow margin above one hundred percent. Capital expenditure was lower than the prior quarter but higher than a year ago, resulting in free cash flow that was slightly lower than the year-ago figure.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow all decreased. Relative to the same quarter one year earlier, revenue was lower, operating cash flow was higher, capital expenditure was higher, and free cash flow was slightly lower, yielding a mixed year-over-year comparison.
Monitor the trend in free cash flow margin, as it declined sequentially despite increased operating cash flow relative to revenue.