Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower sequentially but higher year over year. Free cash flow margin improved sharply versus the prior quarter and increased compared to the same quarter last year.
- Operating cash flow was substantially higher than capital expenditure, resulting in strong free cash flow. The free cash flow margin rose as revenue declined slightly, indicating improved cash conversion efficiency.
- Compared to the prior quarter, operating cash flow and free cash flow were both higher, while capital expenditure was lower. Versus the same quarter last year, all metrics except capital expenditure were higher, with operating cash flow showing the largest improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$393.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$413.8M
Cash generated by operations before capital spending.
CapEx
$19.9M
Capital spending and related asset purchases.
FCF margin
40.3%
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 |
|---|---|---|---|---|---|
| 2022-10-01 | $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% |
| 2023-06-30 | $976.6M | $413.8M | $19.9M | $393.8M | 40.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 178.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Strength
Operating cash flow increased significantly both sequentially and year over year, contributing to a higher free cash flow despite lower revenue sequentially.
Stronger operating cash flow was the most observable positive factor in the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantially higher than capital expenditure, resulting in strong free cash flow. The free cash flow margin rose as revenue declined slightly, indicating improved cash conversion efficiency.
Compared to the prior quarter, operating cash flow and free cash flow were both higher, while capital expenditure was lower. Versus the same quarter last year, all metrics except capital expenditure were higher, with operating cash flow showing the largest improvement.
Monitor the trend in operating cash flow, as it was the primary factor driving the change in free cash flow.