Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all increased compared to the prior quarter and the same quarter last year. The free cash flow margin improved over both periods, reflecting stronger cash generation relative to sales.
- Operating cash flow as a share of revenue rose, supporting a higher free cash flow margin after accounting for capital expenditure. The increase in capital expenditure partially offset the operating cash flow improvement, but free cash flow still grew in absolute terms.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Year-over-year comparisons also showed improvement across each of these metrics, with capital expenditure being higher than both prior periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$356.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$454.0M
Cash generated by operations before capital spending.
CapEx
$98.0M
Capital spending and related asset purchases.
FCF margin
8.7%
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 | $3.8B | $250.0M | $106.0M | $144.0M | 3.8% |
| 2022-09-30 | $3.9B | $380.0M | $45.0M | $335.0M | 8.5% |
| 2022-12-31 | $3.8B | $360.0M | $48.0M | $312.0M | 8.2% |
| 2023-03-31 | $4.1B | $454.0M | $98.0M | $356.0M | 8.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 70.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.9B | 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 strength
Operating cash flow rose at a faster pace than revenue when compared to both the prior quarter and the year-ago period, contributing to the expansion in free cash flow margin.
Higher operating cash flow was the primary factor behind the increase in free cash flow and the improvement in conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue rose, supporting a higher free cash flow margin after accounting for capital expenditure. The increase in capital expenditure partially offset the operating cash flow improvement, but free cash flow still grew in absolute terms.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Year-over-year comparisons also showed improvement across each of these metrics, with capital expenditure being higher than both prior periods.
Capital expenditure increased notably from both the prior quarter and the year-ago quarter, making its trajectory a key factor for future free cash flow conversion.