Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter and year-ago quarter, while operating cash flow and free cash flow were higher. Free cash flow margin improved substantially.
- Operating cash flow exceeded revenue, resulting in a high free cash flow margin. Capital expenditure was higher than both comparison periods, but free cash flow still increased.
- Compared to the previous quarter, free cash flow and margin improved, while revenue decreased. Versus the same quarter last year, free cash flow and margin also improved, despite lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$740.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$379.0M
Capital spending and related asset purchases.
FCF margin
532.4%
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 | $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% |
| 2023-06-30 | $139.0M | $1.1B | $379.0M | $740.0M | 532.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 272.7% | 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 growth
Operating cash flow increased from both the prior quarter and the year-ago period, even as revenue declined.
This growth was the primary contributor to the improved free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue, resulting in a high free cash flow margin. Capital expenditure was higher than both comparison periods, but free cash flow still increased.
Compared to the previous quarter, free cash flow and margin improved, while revenue decreased. Versus the same quarter last year, free cash flow and margin also improved, despite lower revenue.
Monitor the level of capital expenditure, which rose relative to both the prior quarter and the year-ago period.