Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from a negative position a year earlier, though it decreased from the prior quarter. Revenue was stable year over year, while operating cash flow improved significantly from the negative level a year ago.
- Operating cash flow was positive and exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was positive, reflecting improved cash generation compared to the same quarter last year.
- Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by a decrease in operating cash flow. Versus the same quarter a year ago, free cash flow improved from a negative position, supported by a substantial increase in operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$612.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$644.5M
Cash generated by operations before capital spending.
CapEx
$31.7M
Capital spending and related asset purchases.
FCF margin
7.7%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $8.8B | $271.8M | $35.5M | $236.3M | 2.7% |
| 2022-09-30 | $9.6B | $1.1B | $40.2M | $1.1B | 11.2% |
| 2022-12-31 | $7.3B | $829.1M | $47.5M | $781.6M | 10.8% |
| 2023-03-31 | $8.0B | $644.5M | $31.7M | $612.8M | 7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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 Turnaround
Operating cash flow shifted from negative a year ago to positive in the current quarter, enabling positive free cash flow. This improvement was the primary factor behind the year-over-year change in free cash flow.
The positive operating cash flow allowed the company to generate free cash flow despite capital expenditure, reversing the negative free cash flow from a year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive and exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin was positive, reflecting improved cash generation compared to the same quarter last year.
Compared to the prior quarter, free cash flow and free cash flow margin were lower, driven by a decrease in operating cash flow. Versus the same quarter a year ago, free cash flow improved from a negative position, supported by a substantial increase in operating cash flow.
Monitor the trend in operating cash flow, as it declined from the prior quarter after a strong improvement from the negative level a year ago.