Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially and year-over-year. Free cash flow turned positive from the prior quarter but was lower than the same quarter last year.
- Operating cash flow increased compared to the prior quarter, contributing to positive free cash flow despite a modest rise in capital expenditure. The free cash flow margin improved from negative to positive sequentially but weakened versus the year-ago quarter.
- Compared to the preceding quarter, operating cash flow was higher and the free cash flow was significantly improved. Versus the same quarter one year ago, operating cash flow was lower and free cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$462.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$99.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$262.1M
Cash generated by operations before capital spending.
CapEx
$163.0M
Capital spending and related asset purchases.
FCF margin
7.5%
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 | $1.2B | $354.9M | $153.0M | $201.9M | 16.2% |
| 2022-12-31 | $1.2B | $325.4M | $156.1M | $169.3M | 14.1% |
| 2023-03-31 | $1.3B | $150.9M | $158.3M | -$7.4M | -0.6% |
| 2023-06-30 | $1.3B | $262.1M | $163.0M | $99.1M | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 12.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.5B | 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 materially from the prior quarter, which was the primary driver behind the swing to positive free cash flow. Capital expenditure increased only slightly over the same period.
This improvement reversed a negative free cash flow position from the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased compared to the prior quarter, contributing to positive free cash flow despite a modest rise in capital expenditure. The free cash flow margin improved from negative to positive sequentially but weakened versus the year-ago quarter.
Compared to the preceding quarter, operating cash flow was higher and the free cash flow was significantly improved. Versus the same quarter one year ago, operating cash flow was lower and free cash flow was lower.
Monitor the trend in operating cash flow, as it declined from the year-ago level despite stable revenue.