Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved year over year, driven by higher revenue and stable operating cash flow. The margin strengthened compared to the same quarter last year.
- Revenue increased while operating cash flow remained relatively stable, leading to a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago period, supporting cash conversion.
- Compared to the prior quarter, free cash flow was higher despite a slight decrease in operating cash flow, as capital expenditure declined. Versus the same quarter last year, free cash flow and margin both improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$847.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$366.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$393.0M
Cash generated by operations before capital spending.
CapEx
$27.0M
Capital spending and related asset purchases.
FCF margin
17.2%
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 | $1.7B | $199.0M | $54.0M | $145.0M | 8.5% |
| 2022-12-31 | $1.8B | $23.0M | $45.0M | -$22.0M | -1.2% |
| 2023-03-31 | $2.0B | $397.0M | $39.0M | $358.0M | 17.6% |
| 2023-06-30 | $2.1B | $393.0M | $27.0M | $366.0M | 17.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -215.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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.
Revenue Growth
Revenue increased compared to both the prior quarter and the year-ago period, providing a larger base for cash generation. This was the strongest observable driver of free cash flow improvement.
Higher revenue supported a higher free cash flow margin without a proportional increase in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow remained relatively stable, leading to a higher free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago period, supporting cash conversion.
Compared to the prior quarter, free cash flow was higher despite a slight decrease in operating cash flow, as capital expenditure declined. Versus the same quarter last year, free cash flow and margin both improved significantly.
Monitor the trend in operating cash flow, as it remained nearly unchanged quarter over quarter despite higher revenue.