Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin both improved compared to the prior quarter and the same quarter last year, supported by higher operating cash flow and lower capital spending. Revenue increased relative to both comparison periods.
- Revenue rose while operating cash flow improved versus the prior quarter and was slightly below the prior-year level; capital expenditure declined from both periods, resulting in higher free cash flow and a stronger margin.
- Compared to the preceding quarter, free cash flow and margin were significantly higher, driven by a notable reduction in capital expenditure. Relative to the same quarter last year, free cash flow and margin also improved, with revenue higher and capital spending lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$289.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$80.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$148.1M
Cash generated by operations before capital spending.
CapEx
$67.4M
Capital spending and related asset purchases.
FCF margin
7.6%
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 |
|---|---|---|---|---|---|
| 2022-09-24 | $989.2M | $132.8M | $72.4M | $60.4M | 6.1% |
| 2022-12-31 | $1.1B | $234.8M | $89.0M | $145.7M | 13.3% |
| 2023-04-01 | $1.0B | $109.4M | $106.9M | $2.5M | 0.2% |
| 2023-07-01 | $1.1B | $148.1M | $67.4M | $80.7M | 7.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 83.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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.
Lower Capital Expenditure Bolsters Free Cash Flow
Capital expenditure declined sharply from the prior quarter and also fell from the year-ago level, allowing a larger portion of operating cash flow to become free cash flow. This was the most significant factor behind the improvement in free cash flow margin.
The reduction in capital spending directly contributed to a higher free cash flow margin and a substantial increase in free cash flow compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow improved versus the prior quarter and was slightly below the prior-year level; capital expenditure declined from both periods, resulting in higher free cash flow and a stronger margin.
Compared to the preceding quarter, free cash flow and margin were significantly higher, driven by a notable reduction in capital expenditure. Relative to the same quarter last year, free cash flow and margin also improved, with revenue higher and capital spending lower.
Monitor the level of capital expenditure in upcoming quarters, as its variability has a direct impact on free cash flow conversion.