Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow were higher than both the prior quarter and the same quarter one year earlier, resulting in a significantly improved free cash flow margin. Revenue also increased compared to both periods, while capital expenditure was lower than the prior quarter but higher than the year-ago quarter.
- Revenue conversion into operating cash flow was strong, with operating cash flow exceeding revenue, leading to a high free cash flow margin. Capital expenditure was modest relative to operating cash flow, supporting robust free cash flow generation.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, and the free cash flow margin improved substantially. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$840.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$877.7M
Cash generated by operations before capital spending.
CapEx
$36.7M
Capital spending and related asset purchases.
FCF margin
93.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $861.3M | $154.1M | $35.2M | $118.9M | 13.8% |
| 2022-09-30 | $893.0M | $396.8M | $41.0M | $355.8M | 39.8% |
| 2022-12-31 | $883.6M | $316.2M | $43.8M | $272.4M | 30.8% |
| 2023-03-31 | $901.3M | $877.7M | $36.7M | $840.9M | 93.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 391.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.1% | 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.
Strong operating cash flow
Operating cash flow was the strongest observable driver, exceeding revenue and supporting a high free cash flow margin. This was a significant improvement from both the prior quarter and the year-ago quarter.
The elevated operating cash flow directly drove the high free cash flow and margin for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow was strong, with operating cash flow exceeding revenue, leading to a high free cash flow margin. Capital expenditure was modest relative to operating cash flow, supporting robust free cash flow generation.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were higher, and the free cash flow margin improved substantially. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow turning from negative to positive.
Monitor the level of restricted cash, which increased from the prior quarter end, as noted in the filing context.