Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower compared to both the preceding quarter and the same quarter one year earlier. Free cash flow margin improved relative to the year-ago period but weakened from the prior quarter.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin, while lower than the prior quarter, was higher than the year-ago quarter.
- Compared to the preceding quarter, revenue, operating cash flow, and free cash flow were all lower. Relative to the year-ago quarter, revenue was lower, but free cash flow margin was higher, supported by a lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$214.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$224.8M
Cash generated by operations before capital spending.
CapEx
$10.3M
Capital spending and related asset purchases.
FCF margin
4.9%
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 | $6.0B | $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% |
| 2023-06-30 | $4.4B | $224.8M | $10.3M | $214.5M | 4.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 220.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower Capital Expenditure
Capital expenditure was lower than both the prior quarter and the year-ago quarter, contributing to a free cash flow margin that improved year-over-year.
This reduction in capital spending supported free cash flow despite lower operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin, while lower than the prior quarter, was higher than the year-ago quarter.
Compared to the preceding quarter, revenue, operating cash flow, and free cash flow were all lower. Relative to the year-ago quarter, revenue was lower, but free cash flow margin was higher, supported by a lower capital expenditure.
The company's near-term debt maturities, including the Series A senior notes and the receivables securitization facility, are items to monitor.