Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to the prior quarter and the same quarter last year. The free cash flow margin strengthened versus a year ago but was lower than the preceding quarter.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin indicates that a portion of revenue was converted into free cash flow after accounting for capital spending.
- Compared to the immediately preceding quarter, revenue increased while operating cash flow and free cash flow were lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$923.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$223.0M
Capital spending and related asset purchases.
FCF margin
27.5%
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 | $3.6B | -$997.0M | $170.0M | -$1.2B | -32.2% |
| 2022-12-31 | $2.6B | -$182.0M | $177.0M | -$359.0M | -13.7% |
| 2023-03-31 | $2.7B | $3.2B | $233.0M | $2.9B | 109.7% |
| 2023-06-30 | $3.4B | $1.1B | $223.0M | $923.0M | 27.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 239.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $27.0M | 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
Revenue was higher than both the prior quarter and the same quarter last year, providing a larger base for cash generation.
Higher revenue supported an increase in free cash flow compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin indicates that a portion of revenue was converted into free cash flow after accounting for capital spending.
Compared to the immediately preceding quarter, revenue increased while operating cash flow and free cash flow were lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined sequentially despite higher revenue.