Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from both the prior quarter and the year-ago quarter. The free cash flow margin improved compared to the same quarter last year but weakened from the previous quarter.
- Revenue declined, leading to lower operating cash flow. Capital expenditure increased relative to both prior periods, further reducing free cash flow. The free cash flow margin was higher than the year-ago quarter but lower than the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year earlier, revenue and free cash flow were lower, while the free cash flow margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$617.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$712.0M
Cash generated by operations before capital spending.
CapEx
$95.0M
Capital spending and related asset purchases.
FCF margin
34.8%
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 | $2.3B | $990.0M | $190.0M | $800.0M | 34.5% |
| 2022-12-31 | $2.6B | $585.0M | $134.0M | $451.0M | 17.3% |
| 2023-03-31 | $2.0B | $947.0M | $69.0M | $878.0M | 43.6% |
| 2023-06-30 | $1.8B | $712.0M | $95.0M | $617.0M | 34.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 101.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.4% | 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 decrease
Revenue in the current quarter was lower than both the prior quarter and the year-ago quarter. This was the most observable change among the financial metrics.
The lower revenue was associated with the decline in free cash flow relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined, leading to lower operating cash flow. Capital expenditure increased relative to both prior periods, further reducing free cash flow. The free cash flow margin was higher than the year-ago quarter but lower than the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and margin were all lower. Versus the same quarter one year earlier, revenue and free cash flow were lower, while the free cash flow margin was higher.
The filing discusses risks related to a pending transaction and its integration; monitoring the transaction's progress may be relevant.