Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow margin weakened versus the prior quarter but improved relative to the same quarter last year.
- Operating cash flow was lower than the prior quarter but slightly higher than the year-ago quarter. Capital expenditure was higher than both comparison periods, resulting in free cash flow that was lower than the prior quarter and slightly lower than the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was slightly higher, and free cash flow was slightly lower, resulting in a lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$396.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$565.0M
Cash generated by operations before capital spending.
CapEx
$168.8M
Capital spending and related asset purchases.
FCF margin
16.2%
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 | $2.3B | $336.4M | $139.3M | $197.0M | 8.6% |
| 2022-12-31 | $2.3B | $709.5M | $152.3M | $557.2M | 24.7% |
| 2023-03-31 | $2.3B | $599.5M | $162.2M | $437.3M | 19.1% |
| 2023-06-30 | $2.5B | $565.0M | $168.8M | $396.1M | 16.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$15.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Growth vs. Cash Conversion
Revenue was higher in both comparisons, yet free cash flow was lower than the prior quarter and slightly lower than the year-ago quarter. This indicates that the increase in revenue did not translate into a proportional increase in free cash flow.
The free cash flow margin weakened sequentially and declined year-over-year despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but slightly higher than the year-ago quarter. Capital expenditure was higher than both comparison periods, resulting in free cash flow that was lower than the prior quarter and slightly lower than the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, leading to a weakened free cash flow margin. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was slightly higher, and free cash flow was slightly lower, resulting in a lower free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased in both comparisons while free cash flow declined.