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, driven by a significant improvement in operating cash flow. Revenue was stable compared to the prior year, while operating cash flow and free cash flow margin strengthened markedly.
- Revenue was unchanged from the prior year, but operating cash flow increased substantially, leading to a positive free cash flow after capital expenditure. The free cash flow margin improved from negative to positive, reflecting stronger cash conversion.
- Compared to the preceding quarter, revenue was higher, but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was stable, while operating cash flow and free cash flow improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$814.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$192.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$241.3M
Cash generated by operations before capital spending.
CapEx
$48.4M
Capital spending and related asset purchases.
FCF margin
9.3%
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 | $2.2B | $178.8M | $50.2M | $128.6M | 6.0% |
| 2022-09-30 | $2.2B | $264.6M | $65.5M | $199.2M | 9.2% |
| 2022-12-31 | $1.5B | $338.6M | $45.0M | $293.6M | 19.9% |
| 2023-03-31 | $2.1B | $241.3M | $48.4M | $192.9M | 9.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 84.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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 Recovery
Operating cash flow rose sharply from the prior year, turning free cash flow positive. This was the strongest observable driver of the quarter's performance.
The improvement in operating cash flow was the primary factor behind the positive free cash flow and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior year, but operating cash flow increased substantially, leading to a positive free cash flow after capital expenditure. The free cash flow margin improved from negative to positive, reflecting stronger cash conversion.
Compared to the preceding quarter, revenue was higher, but operating cash flow and free cash flow were lower, resulting in a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was stable, while operating cash flow and free cash flow improved significantly.
Monitor whether operating cash flow can sustain its improved level relative to revenue in future quarters.