Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved strongly versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. Capital expenditure was lower sequentially but remained stable compared to the year-ago period.
- Revenue rose from both the preceding quarter and the same quarter one year earlier. Operating cash flow increased at a faster pace than revenue, and with capital expenditure declining sequentially, free cash flow and its margin expanded markedly.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics except capital expenditure were higher; capital expenditure was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$927.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$354.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$388.5M
Cash generated by operations before capital spending.
CapEx
$33.7M
Capital spending and related asset purchases.
FCF margin
19.1%
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 | $1.8B | $151.2M | $47.5M | $103.7M | 5.8% |
| 2022-09-30 | $1.8B | $257.9M | $48.0M | $209.9M | 11.6% |
| 2022-12-31 | $1.7B | $301.9M | $42.8M | $259.1M | 15.3% |
| 2023-03-31 | $1.9B | $388.5M | $33.7M | $354.8M | 19.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 120.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$160.2M | 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 Strength
Operating cash flow increased substantially from both the prior quarter and the same quarter last year. The filing notes that working capital was a source of cash in the current quarter versus a significant use in the year-ago period, and that supply chains have normalized, reducing the working capital required.
This driver was the primary factor behind the higher free cash flow and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose from both the preceding quarter and the same quarter one year earlier. Operating cash flow increased at a faster pace than revenue, and with capital expenditure declining sequentially, free cash flow and its margin expanded markedly.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics except capital expenditure were higher; capital expenditure was slightly lower.
Monitor the trend in capital expenditure, as it decreased from both the prior quarter and the year-ago quarter, which contributed to the free cash flow improvement.