Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose versus the prior quarter and the year-ago period. Free cash flow improved substantially from the negative year-ago level but declined sharply from the prior quarter.
- Operating cash flow was lower than the prior quarter but significantly higher than the year-ago quarter. Capital expenditure was stable sequentially and slightly higher year over year, yielding a free cash flow margin that weakened from the prior quarter but improved from the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was slightly higher while operating cash flow and free cash flow were much lower, resulting in a weakened free cash flow margin. Against the same quarter one year earlier, all metrics improved: revenue was higher, operating cash flow and free cash flow turned positive from negative, and the margin strengthened.
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
$209.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$335.0M
Cash generated by operations before capital spending.
CapEx
$126.0M
Capital spending and related asset purchases.
FCF margin
3.8%
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 | $5.2B | $340.0M | $139.0M | $201.0M | 3.9% |
| 2022-09-30 | $5.3B | $965.0M | $135.0M | $830.0M | 15.6% |
| 2022-12-31 | $5.4B | $1.2B | $209.0M | $977.0M | 18.1% |
| 2023-03-31 | $5.5B | $335.0M | $126.0M | $209.0M | 3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 32.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$8.5B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth supports cash generation year over year
Revenue in the current quarter was higher than both the prior quarter and the year-ago quarter, providing a broader base for cash conversion. The operating cash flow and free cash flow both turned positive compared to the year-ago period.
Higher revenue contributed to a significantly improved free cash flow margin compared to the same quarter last year.
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 prior quarter but significantly higher than the year-ago quarter. Capital expenditure was stable sequentially and slightly higher year over year, yielding a free cash flow margin that weakened from the prior quarter but improved from the year-ago quarter.
Compared to the immediately preceding quarter, revenue was slightly higher while operating cash flow and free cash flow were much lower, resulting in a weakened free cash flow margin. Against the same quarter one year earlier, all metrics improved: revenue was higher, operating cash flow and free cash flow turned positive from negative, and the margin strengthened.
Monitor whether operating cash flow can sustain a level closer to the prior quarter rather than reverting to the lower year-ago pattern.