Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion strengthened sharply from the prior quarter, driven by significantly higher operating cash flow. Free cash flow margin improved but remained slightly below the year-ago level.
- Revenue was modestly higher than both the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the previous quarter and was also higher year over year, yielding a larger free cash flow after capital expenditure. The free cash flow margin improved markedly from the prior quarter but was slightly lower than a year earlier.
- Compared to the prior quarter, operating cash flow surged and free cash flow turned from minimal to robust, driving a major margin improvement. Versus the same quarter last year, revenue increased while operating cash flow and free cash flow were higher, but margin weakened modestly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$721.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$794.0M
Cash generated by operations before capital spending.
CapEx
$73.0M
Capital spending and related asset purchases.
FCF margin
18.3%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $3.9B | $1.2B | $100.0M | $1.1B | 28.7% |
| 2022-12-31 | $3.4B | $418.0M | $59.0M | $359.0M | 10.6% |
| 2023-03-31 | $3.8B | $68.0M | $62.0M | $6.0M | 0.2% |
| 2023-06-30 | $3.9B | $794.0M | $73.0M | $721.0M | 18.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 7.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Surge
Operating cash flow rose sharply from the prior quarter and was higher year over year, enabling a substantial increase in free cash flow despite relatively modest capital expenditure.
This was the strongest observable driver, converting revenue into free cash flow at a significantly improved margin versus the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was modestly higher than both the prior quarter and the year-ago quarter. Operating cash flow rose substantially from the previous quarter and was also higher year over year, yielding a larger free cash flow after capital expenditure. The free cash flow margin improved markedly from the prior quarter but was slightly lower than a year earlier.
Compared to the prior quarter, operating cash flow surged and free cash flow turned from minimal to robust, driving a major margin improvement. Versus the same quarter last year, revenue increased while operating cash flow and free cash flow were higher, but margin weakened modestly.
Monitor operating cash flow sustainability given the sharp sequential volatility, particularly as capital expenditure remained relatively stable.