Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved versus both the prior quarter and the same quarter last year. Free cash flow margin also strengthened in both comparisons.
- Revenue increased while operating cash flow rose at a stronger pace, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was higher than the prior quarter but lower than a year ago.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics also showed improvement, with free cash flow margin reaching a higher level.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$840.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$285.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$341.0M
Cash generated by operations before capital spending.
CapEx
$56.0M
Capital spending and related asset purchases.
FCF margin
14.9%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.8B | $335.0M | $79.0M | $256.0M | 14.2% |
| 2022-09-30 | $1.7B | $178.0M | $46.0M | $132.0M | 7.6% |
| 2022-12-31 | $1.7B | $209.0M | $42.0M | $167.0M | 9.7% |
| 2023-03-31 | $1.9B | $341.0M | $56.0M | $285.0M | 14.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -135.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | 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.
Stronger cash generation
Operating cash flow increased at a faster rate than revenue, driving a higher free cash flow margin. This was the strongest observable driver of the quarter's performance.
The improvement in cash conversion efficiency strengthened overall free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose at a stronger pace, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure was higher than the prior quarter but lower than a year ago.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics also showed improvement, with free cash flow margin reaching a higher level.
Monitor the trend in capital expenditure relative to operating cash flow, as it was higher sequentially but lower year-over-year.