Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin was stable sequentially and higher year-over-year.
- Revenue increased while operating cash flow grew at a faster pace, leading to higher free cash flow and a stable free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, supporting cash conversion.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow showing a larger relative increase than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$758.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$787.5M
Cash generated by operations before capital spending.
CapEx
$29.1M
Capital spending and related asset purchases.
FCF margin
7.8%
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 | $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% |
| 2023-06-30 | $9.7B | $787.5M | $29.1M | $758.4M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 56.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Operating Cash Flow Growth
Operating cash flow increased from both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the strongest observable driver of free cash flow improvement.
Higher operating cash flow directly lifted free cash flow and supported the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew at a faster pace, leading to higher free cash flow and a stable free cash flow margin. Capital expenditure was lower than both the prior quarter and the year-ago quarter, supporting cash conversion.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow showing a larger relative increase than revenue.
Monitor the trend in capital expenditure, as it was lower in both comparisons and could affect future cash conversion if it increases.