Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, supported by higher operating cash flow and relatively stable revenue. The free cash flow margin strengthened over the same periods.
- Revenue was unchanged from the previous quarter and higher than a year ago. Operating cash flow rose compared with both periods, while capital expenditure was lower than the prior year and slightly below the preceding quarter. The resulting free cash flow and its margin both increased sequentially and year over year.
- Compared with the immediately preceding quarter, free cash flow was higher on improved operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow was significantly higher, driven by a larger operating cash flow and a reduced capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$198.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$88.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$181.5M
Cash generated by operations before capital spending.
CapEx
$93.1M
Capital spending and related asset purchases.
FCF margin
7.3%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $1.3B | $79.6M | $139.0M | -$59.4M | -4.4% |
| 2022-12-31 | $1.4B | $220.5M | $106.9M | $113.6M | 8.3% |
| 2023-03-31 | $1.2B | $152.4M | $97.1M | $55.3M | 4.5% |
| 2023-06-30 | $1.2B | $181.5M | $93.1M | $88.5M | 7.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -49.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.5B | 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 Expansion
Operating cash flow increased from the prior quarter and from the same quarter last year, marking the strongest observable driver of free cash flow improvement. Revenue held steady sequentially while being higher year over year, providing a stable base for cash generation.
The higher operating cash flow, combined with a lower capital expenditure, directly lifted free cash flow and its margin to the highest levels among the three periods presented.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the previous quarter and higher than a year ago. Operating cash flow rose compared with both periods, while capital expenditure was lower than the prior year and slightly below the preceding quarter. The resulting free cash flow and its margin both increased sequentially and year over year.
Compared with the immediately preceding quarter, free cash flow was higher on improved operating cash flow and slightly lower capital expenditure. Versus the same quarter one year earlier, free cash flow was significantly higher, driven by a larger operating cash flow and a reduced capital expenditure.
Monitor whether capital expenditure, which declined both sequentially and year over year, remains at a level that supports sustained cash generation.