Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose compared to the same quarter last year. Free cash flow improved significantly versus both the preceding quarter and the year-ago period, driven by a higher operating cash flow.
- Operating cash flow as a share of revenue strengthened, leading to a free cash flow margin that improved from the prior quarter and turned positive from a negative level one year earlier. Capital expenditure increased moderately but remained well covered by operating cash flow.
- Compared to the immediately preceding quarter, revenue was lower but free cash flow was higher, reflecting a stronger conversion of revenue into cash. Versus the same quarter one year earlier, both revenue and free cash flow were higher, with 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
$592.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$94.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$125.3M
Cash generated by operations before capital spending.
CapEx
$30.7M
Capital spending and related asset purchases.
FCF margin
14.0%
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 | $875.6M | -$207.9M | $11.8M | -$219.7M | -25.1% |
| 2022-12-31 | $1.3B | $714.7M | $31.8M | $682.9M | 50.8% |
| 2023-03-31 | $791.6M | $59.5M | $25.0M | $34.6M | 4.4% |
| 2023-06-30 | $675.8M | $125.3M | $30.7M | $94.5M | 14.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 148.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | 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 Improvement
Operating cash flow rose sharply from the prior quarter and turned positive from a negative level one year earlier, providing the primary lift to free cash flow. This improvement occurred even as revenue declined sequentially.
The stronger operating cash flow drove free cash flow to a higher level than in either comparison period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue strengthened, leading to a free cash flow margin that improved from the prior quarter and turned positive from a negative level one year earlier. Capital expenditure increased moderately but remained well covered by operating cash flow.
Compared to the immediately preceding quarter, revenue was lower but free cash flow was higher, reflecting a stronger conversion of revenue into cash. Versus the same quarter one year earlier, both revenue and free cash flow were higher, with free cash flow turning from negative to positive.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased from both comparison periods.