Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased relative to both the prior quarter and the same quarter last year, but operating cash flow declined, resulting in lower free cash flow. The free cash flow margin weakened considerably compared to the year-ago period.
- Operating cash flow decreased compared to both the preceding quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but higher than a year earlier. The combination led to a free cash flow that was lower than both comparison periods and a free cash flow margin that weakened.
- Compared to the preceding quarter, revenue was higher, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue was also higher, but operating cash flow and free cash flow were substantially lower, and the margin weakened significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$916.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$109.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$197.5M
Cash generated by operations before capital spending.
CapEx
$88.1M
Capital spending and related asset purchases.
FCF margin
1.9%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $5.6B | $392.2M | $74.9M | $317.2M | 5.7% |
| 2022-09-30 | $5.7B | $453.6M | $91.0M | $362.6M | 6.4% |
| 2022-12-31 | $5.5B | $222.4M | $95.6M | $126.7M | 2.3% |
| 2023-03-31 | $5.8B | $197.5M | $88.1M | $109.4M | 1.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 36.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 Decline
Operating cash flow fell compared to both the prior quarter and the year-ago period, despite higher revenue. This was the strongest observable driver of the reduced free cash flow.
Lower operating cash flow more than offset the benefit of higher revenue, compressing free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased compared to both the preceding quarter and the year-ago quarter, while capital expenditure was lower than the prior quarter but higher than a year earlier. The combination led to a free cash flow that was lower than both comparison periods and a free cash flow margin that weakened.
Compared to the preceding quarter, revenue was higher, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter one year earlier, revenue was also higher, but operating cash flow and free cash flow were substantially lower, and the margin weakened significantly.
Monitor the trend in operating cash flow, as its decline drove the reduction in free cash flow while revenue rose.