Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were lower than the prior quarter, but free cash flow turned positive compared to the same quarter last year. The free cash flow margin, while positive, weakened from the preceding quarter.
- Operating cash flow of one hundred fifty-one million dollars converted into free cash flow of one hundred fifty million dollars after minimal capital expenditure, yielding a positive free cash flow margin. This conversion improved sharply from the negative margin a year earlier but declined from the prior quarter's higher conversion rate.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, all cash flow metrics improved from negative to positive, while revenue was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$529.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$150.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$151.1M
Cash generated by operations before capital spending.
CapEx
$329000
Capital spending and related asset purchases.
FCF margin
21.3%
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 | $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% |
| 2023-06-30 | $707.9M | $151.1M | $329000 | $150.8M | 21.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -154.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $1.8B | 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 decline
Revenue and operating cash flow were lower than the prior quarter, though free cash flow turned positive compared to the same quarter last year. The filing context notes a substantial cash and cash equivalents balance and outstanding senior notes, but does not attribute the cash flow changes to any specific operational factor.
The sequential decline in operating cash flow reduces the cushion for future capital allocation and may warrant close observation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of one hundred fifty-one million dollars converted into free cash flow of one hundred fifty million dollars after minimal capital expenditure, yielding a positive free cash flow margin. This conversion improved sharply from the negative margin a year earlier but declined from the prior quarter's higher conversion rate.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, all cash flow metrics improved from negative to positive, while revenue was slightly lower.
Monitor the trajectory of operating cash flow given the sequential decline from the prior quarter.