Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow margin weakened compared to both periods, reflecting a lower proportion of revenue converted to free cash flow.
- Operating cash flow was slightly higher than the prior quarter but lower than a year ago. Capital expenditure decreased from the prior quarter but increased from the year-ago period, resulting in free cash flow that was higher than the prior quarter but lower than the year-ago quarter. The free cash flow margin declined from both comparative periods.
- Compared to the prior quarter, revenue and free cash flow improved, while the margin weakened. Compared to the same quarter last year, revenue improved but free cash flow and margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$240.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$267.4M
Cash generated by operations before capital spending.
CapEx
$26.7M
Capital spending and related asset purchases.
FCF margin
23.6%
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $857.5M | $324.5M | $24.1M | $300.5M | 35.0% |
| 2022-10-01 | $902.6M | $317.1M | $44.1M | $273.0M | 30.2% |
| 2022-12-31 | $899.9M | $263.6M | $36.9M | $226.7M | 25.2% |
| 2023-03-31 | $1.0B | $267.4M | $26.7M | $240.7M | 23.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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.
Revenue Growth
Revenue increased compared to both the prior quarter and the same quarter one year earlier.
The higher revenue contributed to a sequential increase in free cash flow, yet the free cash flow margin was lower than both comparative periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was slightly higher than the prior quarter but lower than a year ago. Capital expenditure decreased from the prior quarter but increased from the year-ago period, resulting in free cash flow that was higher than the prior quarter but lower than the year-ago quarter. The free cash flow margin declined from both comparative periods.
Compared to the prior quarter, revenue and free cash flow improved, while the margin weakened. Compared to the same quarter last year, revenue improved but free cash flow and margin declined.
Monitor capital expenditure levels as they have varied significantly between periods.