Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned sharply positive this quarter, leading to strong free cash flow and a significantly improved margin. The company's cash conversion strengthened compared to both the prior quarter and the same period last year.
- Revenue increased moderately while operating cash flow swung from negative to positive, driving free cash flow substantially higher. The free cash flow margin improved markedly, reflecting a more efficient conversion of revenue into cash after capital expenditure.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow improved from negative to positive, and the margin turned positive. Versus the same quarter one year earlier, all cash flow metrics and the margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$673.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$286.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$299.5M
Cash generated by operations before capital spending.
CapEx
$13.4M
Capital spending and related asset purchases.
FCF margin
9.4%
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 | $2.8B | $257.2M | $11.0M | $246.2M | 8.7% |
| 2022-12-31 | $2.9B | $259.6M | $10.6M | $249.0M | 8.4% |
| 2023-03-31 | $2.9B | -$84.6M | $23.2M | -$107.7M | -3.7% |
| 2023-06-30 | $3.0B | $299.5M | $13.4M | $286.1M | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 203.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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.
Cash Flow Reversal
The strongest observable driver was the sharp reversal in operating cash flow from negative in the prior quarter to positive this quarter, which directly fueled free cash flow growth. This shift is the primary factor behind the improved cash conversion metrics.
This change transformed a negative free cash flow position into a strongly positive one, significantly enhancing the company's liquidity profile.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased moderately while operating cash flow swung from negative to positive, driving free cash flow substantially higher. The free cash flow margin improved markedly, reflecting a more efficient conversion of revenue into cash after capital expenditure.
Compared to the immediately preceding quarter, operating cash flow and free cash flow improved from negative to positive, and the margin turned positive. Versus the same quarter one year earlier, all cash flow metrics and the margin were higher.
Monitor whether the company can sustain this level of operating cash flow momentum in subsequent quarters, given the prior quarter showed a negative outflow.