Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to the same quarter last year, and the margin improved sequentially. Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow increased on both comparisons.
- Operating cash flow as a share of revenue was higher than both the prior quarter and the same quarter last year, driving a positive free cash flow margin after capital expenditure. Capital expenditure was higher than the prior quarter but lower than a year ago.
- Compared to the prior quarter, revenue was lower but free cash flow and its margin improved. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, and the margin turned positive from negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$416.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$80.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$155.4M
Cash generated by operations before capital spending.
CapEx
$74.7M
Capital spending and related asset purchases.
FCF margin
10.9%
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 | $696.2M | $172.8M | $91.5M | $81.3M | 11.7% |
| 2022-09-30 | $769.6M | $293.2M | $108.2M | $185.0M | 24.0% |
| 2022-12-31 | $815.2M | $132.5M | $63.5M | $69.0M | 8.5% |
| 2023-03-31 | $741.5M | $155.4M | $74.7M | $80.7M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 166.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.1% | 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 was higher than both the prior quarter and the same quarter last year, providing the primary support for the positive free cash flow. This improvement occurred even as revenue declined sequentially.
The stronger operating cash flow enabled the company to generate positive free cash flow despite a sequential rise in capital expenditure.
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 was higher than both the prior quarter and the same quarter last year, driving a positive free cash flow margin after capital expenditure. Capital expenditure was higher than the prior quarter but lower than a year ago.
Compared to the prior quarter, revenue was lower but free cash flow and its margin improved. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were all higher, and the margin turned positive from negative.
Monitor the sequential increase in capital expenditure, as it was higher than the prior quarter while revenue declined.