Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive this quarter, reversing a negative position in the prior quarter. Revenue was higher compared to the same quarter last year, although the free cash flow margin was lower.
- Operating cash flow was substantial, and capital expenditure remained modest, resulting in significant free cash flow. The free cash flow margin, while healthy, was lower than the year-ago period due to higher revenue.
- Compared to the immediately preceding quarter, operating cash flow improved from negative to positive, driving a similar swing in free cash flow. Versus the same quarter one year earlier, revenue was higher but free cash flow was comparable, leading to a lower margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.5B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.6B
Cash generated by operations before capital spending.
CapEx
$84.0M
Capital spending and related asset purchases.
FCF margin
36.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $3.0B | $933.0M | $116.0M | $817.0M | 26.9% |
| 2022-09-30 | $3.2B | $270.0M | $74.0M | $196.0M | 6.1% |
| 2022-12-31 | $4.6B | -$531.0M | $79.0M | -$610.0M | -13.2% |
| 2023-03-31 | $4.1B | $1.6B | $84.0M | $1.5B | 36.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2968.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 swing
Operating cash flow moved from a negative figure in the prior quarter to a positive figure this quarter, which was the primary factor behind the improvement in free cash flow.
This shift transformed the company from a free cash flow user into a generator, strengthening its liquidity position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was substantial, and capital expenditure remained modest, resulting in significant free cash flow. The free cash flow margin, while healthy, was lower than the year-ago period due to higher revenue.
Compared to the immediately preceding quarter, operating cash flow improved from negative to positive, driving a similar swing in free cash flow. Versus the same quarter one year earlier, revenue was higher but free cash flow was comparable, leading to a lower margin.
Monitor the free cash flow margin trajectory as revenue growth outpaces cash flow generation compared to the prior year.