Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow declined from the prior quarter but improved relative to the year-ago period, while capital expenditure was higher in both comparisons.
- The free cash flow margin weakened from the prior quarter but strengthened from the same quarter last year, reflecting a lower operating cash flow relative to revenue in the sequential comparison but a higher operating cash flow in the year-over-year comparison.
- Compared to the prior quarter, revenue was unchanged while operating cash flow, free cash flow, and margin all decreased, and capital expenditure increased. Compared to the same quarter last year, revenue was unchanged while operating cash flow, free cash flow, and margin all increased, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$309.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$326.8M
Cash generated by operations before capital spending.
CapEx
$17.4M
Capital spending and related asset purchases.
FCF margin
23.3%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $1.3B | $357.0M | $6.1M | $350.9M | 27.0% |
| 2022-12-31 | $1.3B | $371.8M | $8.2M | $363.6M | 27.2% |
| 2023-03-31 | $1.3B | $477.3M | $8.2M | $469.1M | 35.5% |
| 2023-06-30 | $1.3B | $326.8M | $17.4M | $309.4M | 23.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 143.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 Decrease
Operating cash flow was lower than the prior quarter despite stable revenue, leading to a lower free cash flow margin. This change was the most significant observable driver of the quarter's cash conversion performance.
The reduction in operating cash flow relative to revenue weakened free cash flow generation compared to the previous quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The free cash flow margin weakened from the prior quarter but strengthened from the same quarter last year, reflecting a lower operating cash flow relative to revenue in the sequential comparison but a higher operating cash flow in the year-over-year comparison.
Compared to the prior quarter, revenue was unchanged while operating cash flow, free cash flow, and margin all decreased, and capital expenditure increased. Compared to the same quarter last year, revenue was unchanged while operating cash flow, free cash flow, and margin all increased, and capital expenditure was higher.
Monitor the sequential decline in operating cash flow, as it was the primary factor behind the weaker free cash flow margin this quarter.