Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was positive in the current quarter, reversing the negative result from the same quarter one year earlier. However, compared to the immediately preceding quarter, free cash flow was lower and the free cash flow margin weakened.
- Revenue declined from the prior quarter, and operating cash flow decreased more substantially, resulting in a lower free cash flow margin. Capital expenditure remained relatively stable compared to the prior quarter.
- Compared to the immediately preceding quarter, revenue and operating cash flow were both lower, leading to a lower free cash flow. Versus the same quarter one year earlier, revenue was lower but operating cash flow turned positive, producing a positive free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$243.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$254.5M
Cash generated by operations before capital spending.
CapEx
$11.4M
Capital spending and related asset purchases.
FCF margin
5.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $6.8B | $265.3M | $26.7M | $238.5M | 3.5% |
| 2022-09-30 | $6.0B | $625.5M | $13.9M | $611.5M | 10.2% |
| 2022-12-31 | $5.1B | $773.4M | $11.2M | $762.2M | 15.0% |
| 2023-03-31 | $4.6B | $254.5M | $11.4M | $243.2M | 5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 211.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | 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
Operating cash flow improved from a negative position a year ago but fell from the prior quarter. The company’s filing notes that it has historically generated substantial cash from operations and expects to use debt facilities to fund working capital, capital expenditures, and other uses.
The free cash flow margin, while positive, was lower than the prior quarter, reflecting the decline in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue declined from the prior quarter, and operating cash flow decreased more substantially, resulting in a lower free cash flow margin. Capital expenditure remained relatively stable compared to the prior quarter.
Compared to the immediately preceding quarter, revenue and operating cash flow were both lower, leading to a lower free cash flow. Versus the same quarter one year earlier, revenue was lower but operating cash flow turned positive, producing a positive free cash flow margin.
Monitor the trend in operating cash flow, as the company's free cash flow is heavily dependent on this metric.