Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from the prior quarter but improved year over year. The quarter showed a weaker cash conversion compared to the previous period.
- Revenue was stable relative to the prior quarter, while operating cash flow decreased and capital expenditure increased, resulting in lower free cash flow and a narrower margin. Compared to the same quarter last year, revenue was higher, and both operating cash flow and free cash flow were higher.
- Compared to the immediately preceding quarter, free cash flow and margin weakened, driven by lower operating cash flow and higher capital spending. Versus the same quarter one year earlier, both free cash flow and margin improved significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.0B
Trailing twelve-month free cash flow.
Quarter free cash flow
$438.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$515.1M
Cash generated by operations before capital spending.
CapEx
$76.8M
Capital spending and related asset purchases.
FCF margin
33.9%
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 | $1.1B | $483.0M | $87.8M | $395.2M | 34.4% |
| 2022-12-31 | $1.3B | $528.1M | $30.9M | $497.2M | 38.8% |
| 2023-03-31 | $1.3B | $677.5M | $30.3M | $647.2M | 51.3% |
| 2023-06-30 | $1.3B | $515.1M | $76.8M | $438.3M | 33.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 164.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.9% | 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 Variability
Operating cash flow declined from the prior quarter even though revenue remained stable, marking the strongest observable driver of the quarter's cash flow change.
Shifts in operating cash flow can directly influence free cash flow and future investment capacity.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to the prior quarter, while operating cash flow decreased and capital expenditure increased, resulting in lower free cash flow and a narrower margin. Compared to the same quarter last year, revenue was higher, and both operating cash flow and free cash flow were higher.
Compared to the immediately preceding quarter, free cash flow and margin weakened, driven by lower operating cash flow and higher capital spending. Versus the same quarter one year earlier, both free cash flow and margin improved significantly.
Monitor the trend in capital expenditure, which was higher this quarter compared to both prior periods.