Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter a year ago. Free cash flow and margin weakened sequentially but improved substantially year-over-year.
- Operating cash flow was lower than the previous quarter but higher than a year earlier, while capital expenditure remained relatively stable across both periods. The resulting free cash flow margin narrowed sequentially yet widened significantly from the year-ago level.
- Compared to the immediately preceding quarter, free cash flow and margin weakened as operating cash flow declined. Versus the same quarter one year earlier, both free cash flow and margin improved markedly, supported by stronger operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$488.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$601.0M
Cash generated by operations before capital spending.
CapEx
$113.0M
Capital spending and related asset purchases.
FCF margin
19.2%
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 | $2.4B | $729.0M | $102.0M | $627.0M | 26.3% |
| 2022-12-31 | $2.5B | $684.0M | $153.0M | $531.0M | 21.2% |
| 2023-03-31 | $2.5B | $841.0M | $132.0M | $709.0M | 28.2% |
| 2023-06-30 | $2.5B | $601.0M | $113.0M | $488.0M | 19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 285.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | 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 Variability
Operating cash flow decreased from the prior quarter, compressing free cash flow despite stable revenue and capex. Filing context notes that operating cash flows arise from customer receipts offset by sales, marketing, compensation, and payment expenses, and that the year-to-date change was primarily attributable to working capital movements.
The sequential drop in operating cash flow was the strongest observable factor weakening free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the previous quarter but higher than a year earlier, while capital expenditure remained relatively stable across both periods. The resulting free cash flow margin narrowed sequentially yet widened significantly from the year-ago level.
Compared to the immediately preceding quarter, free cash flow and margin weakened as operating cash flow declined. Versus the same quarter one year earlier, both free cash flow and margin improved markedly, supported by stronger operating cash flow.
Monitor the trajectory of operating cash flow, which drove the sequential decline in free cash flow.