Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive in the current quarter, reversing a large negative balance from the prior quarter. Operating cash flow improved significantly while capital expenditure decreased, leading to a positive free cash flow margin.
- Revenue was lower than the prior quarter but operating cash flow swung from a large outflow to a large inflow, driving free cash flow positive. Capital expenditure was lower than both the prior quarter and the year-ago quarter, supporting the improvement in free cash flow.
- Compared to the prior quarter, free cash flow improved from a large negative to a positive figure, and the margin turned positive. Compared to the same quarter last year, free cash flow and margin were lower, as operating cash flow was weaker and capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$543.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$713.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$812.0M
Cash generated by operations before capital spending.
CapEx
$99.0M
Capital spending and related asset purchases.
FCF margin
11.8%
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 | $2.8B | -$525.0M | $142.0M | -$667.0M | -24.0% |
| 2022-12-31 | $3.8B | $3.0B | $145.0M | $2.9B | 75.1% |
| 2023-03-31 | $4.9B | -$3.3B | $151.0M | -$3.5B | -70.9% |
| 2023-06-30 | $6.0B | $812.0M | $99.0M | $713.0M | 11.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 100.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 Reversal
Operating cash flow shifted from a large negative in the prior quarter to a positive inflow in the current quarter, which was the primary factor behind the swing in free cash flow.
This reversal was the strongest observable driver of the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but operating cash flow swung from a large outflow to a large inflow, driving free cash flow positive. Capital expenditure was lower than both the prior quarter and the year-ago quarter, supporting the improvement in free cash flow.
Compared to the prior quarter, free cash flow improved from a large negative to a positive figure, and the margin turned positive. Compared to the same quarter last year, free cash flow and margin were lower, as operating cash flow was weaker and capital expenditure was slightly lower.
Monitor whether operating cash flow can sustain its positive level in the coming quarters, given the large swing from the prior quarter.