Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter a year earlier. Free cash flow was lower than the prior quarter but higher than the same quarter a year earlier, with margin weakening sequentially but strengthening year over year.
- Operating cash flow was lower than the prior quarter despite higher revenue, while capital expenditure decreased. Free cash flow margin weakened sequentially but improved compared to the same quarter a year earlier.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower. Compared to the same quarter a year earlier, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$887.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$902.4M
Cash generated by operations before capital spending.
CapEx
$15.2M
Capital spending and related asset purchases.
FCF margin
61.5%
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 | $1.2B | $617.6M | $17.9M | $599.7M | 48.5% |
| 2022-09-30 | $1.2B | $657.8M | $24.0M | $633.8M | 51.6% |
| 2022-12-31 | $1.2B | $981.5M | $24.4M | $957.1M | 79.2% |
| 2023-03-31 | $1.4B | $902.4M | $15.2M | $887.2M | 61.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | 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.
Higher Revenue
Revenue was higher than both the prior quarter and the same quarter a year earlier.
This supported higher free cash flow compared to the year-ago period, although operating cash flow declined sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter despite higher revenue, while capital expenditure decreased. Free cash flow margin weakened sequentially but improved compared to the same quarter a year earlier.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower. Compared to the same quarter a year earlier, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower.
According to the filing, cash used in financing activities increased compared to the same quarter a year earlier, primarily due to lower cash performance bonds and guaranty fund contributions.