Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow margin improved compared to a year ago but weakened sharply from the preceding quarter.
- Operating cash flow was lower than revenue, resulting in a free cash flow margin that was positive but significantly below the prior quarter's level. Capital expenditure was higher than both comparison periods, reducing free cash flow conversion.
- Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, while revenue was higher. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, capital expenditure, free cash flow, and margin were all higher.
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
$179.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$221.3M
Cash generated by operations before capital spending.
CapEx
$42.2M
Capital spending and related asset purchases.
FCF margin
18.9%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $948.2M | $221.3M | $42.2M | $179.1M | 18.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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.
Operating Cash Flow Volatility
Operating cash flow was lower than the prior quarter by a wide margin, even though revenue increased. This shift drove a significant reduction in free cash flow and margin.
The quarter's cash conversion weakened compared to the immediately preceding period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, resulting in a free cash flow margin that was positive but significantly below the prior quarter's level. Capital expenditure was higher than both comparison periods, reducing free cash flow conversion.
Compared to the prior quarter, operating cash flow and free cash flow were substantially lower, while revenue was higher. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, capital expenditure, free cash flow, and margin were all higher.
Monitor the level of operating cash flow relative to revenue, as it declined sharply from the prior quarter despite higher revenue.