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 compared to both the prior quarter and the same quarter last year, generating a positive free cash flow margin. Capital expenditure remained minimal relative to operating cash flow.
- Revenue was accompanied by positive operating cash flow, resulting in a free cash flow margin that was positive and higher than both comparison periods. Operating cash flow exceeded revenue-based expectations given the prior quarters had negative conversion.
- Compared to the immediately preceding quarter, revenue was higher while operating and free cash flow shifted from negative to positive. Versus the same quarter one year earlier, revenue was lower yet cash flow metrics improved markedly from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$1.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$463.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$463.1M
Cash generated by operations before capital spending.
CapEx
$50000
Capital spending and related asset purchases.
FCF margin
59.9%
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 | $808.3M | -$351.1M | $2.5M | -$353.7M | -43.8% |
| 2022-09-30 | $590.3M | -$397.5M | $6000 | -$397.5M | -67.3% |
| 2022-12-31 | $629.1M | -$745.4M | $814000 | -$746.3M | -118.6% |
| 2023-03-31 | $772.5M | $463.1M | $50000 | $463.0M | 59.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -586.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.6B | 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 Turnaround
Operating cash flow improved from a sizable negative in both comparison quarters to a positive amount, driving the overall free cash flow positive. This shift is the strongest observable driver of the quarter's performance.
The positive free cash flow margin was entirely attributable to the strong operating cash flow generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was accompanied by positive operating cash flow, resulting in a free cash flow margin that was positive and higher than both comparison periods. Operating cash flow exceeded revenue-based expectations given the prior quarters had negative conversion.
Compared to the immediately preceding quarter, revenue was higher while operating and free cash flow shifted from negative to positive. Versus the same quarter one year earlier, revenue was lower yet cash flow metrics improved markedly from negative to positive.
Monitor whether operating cash flow remains positive in subsequent quarters given the volatility observed in the prior year.