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 sequentially and year-over-year. Free cash flow margin strengthened compared with both prior periods.
- Operating cash flow converted to free cash flow after capital expenditure, with free cash flow margin rising as operating cash flow grew faster than revenue.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter a year ago, all metrics were higher and the margin also strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$930.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$346.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$430.0M
Cash generated by operations before capital spending.
CapEx
$84.0M
Capital spending and related asset purchases.
FCF margin
17.1%
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 | $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% |
| 2023-06-30 | $2.0B | $430.0M | $84.0M | $346.0M | 17.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 196.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 Strength
Operating cash flow was higher than both the prior quarter and the year-ago quarter, providing the primary support for free cash flow improvement.
The stronger operating cash flow drove the free cash flow margin higher despite higher capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted to free cash flow after capital expenditure, with free cash flow margin rising as operating cash flow grew faster than revenue.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow were higher, and the free cash flow margin improved. Versus the same quarter a year ago, all metrics were higher and the margin also strengthened.
Monitor capital expenditure levels relative to operating cash flow, as this quarter's capex was higher sequentially but still resulted in improved free cash flow.