Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the preceding quarter but lower than a year earlier. Free cash flow weakened sequentially and year-over-year, driven by a lower operating cash flow.
- Operating cash flow was lower than both the prior quarter and the same quarter last year, while capital expenditure was higher in both comparisons. As a result, free cash flow and free cash flow margin moved lower sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue improved but operating cash flow, free cash flow, and margin all weakened. Versus the same quarter one year earlier, revenue was lower and all cash flow metrics 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
$188.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$228.2M
Cash generated by operations before capital spending.
CapEx
$39.6M
Capital spending and related asset purchases.
FCF margin
3.4%
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 | $6.2B | $332.9M | $33.6M | $299.3M | 4.8% |
| 2022-12-31 | $5.4B | $241.9M | $30.6M | $211.3M | 3.9% |
| 2023-03-31 | $5.1B | $365.4M | $31.7M | $333.7M | 6.5% |
| 2023-06-30 | $5.6B | $228.2M | $39.6M | $188.6M | 3.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Sequential revenue growth
Revenue rose compared to the preceding quarter, which partially offset the weaker cash conversion. However, operating cash flow did not keep pace with the revenue increase, and capital expenditure rose sequentially.
Despite higher revenue, free cash flow margin contracted sequentially and year-over-year, indicating that cash generation lagged the top-line trend.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the same quarter last year, while capital expenditure was higher in both comparisons. As a result, free cash flow and free cash flow margin moved lower sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue improved but operating cash flow, free cash flow, and margin all weakened. Versus the same quarter one year earlier, revenue was lower and all cash flow metrics declined.
Revenue showed sequential improvement but was below the prior-year level; the sustainability of the top-line recovery is worth monitoring.