Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased, while operating cash flow and free cash flow were stable versus the prior quarter. Compared with the same quarter last year, revenue, operating cash flow, and free cash flow all improved significantly, leading to a higher free cash flow margin.
- Revenue rose, yet operating cash flow was essentially stable, indicating a mixed cash conversion efficiency. Free cash flow margin narrowed slightly from the prior quarter due to a proportionally smaller operating cash flow relative to revenue.
- Compared with the immediately preceding quarter, revenue was higher, while operating cash flow, capital expenditure, free cash flow, and margin were all slightly lower and essentially stable. Compared with the same quarter one year earlier, all metrics were higher, with free cash flow and margin showing notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$355.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$450.0M
Cash generated by operations before capital spending.
CapEx
$95.0M
Capital spending and related asset purchases.
FCF margin
8.5%
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 | $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% |
| 2023-06-30 | $4.2B | $450.0M | $95.0M | $355.0M | 8.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 78.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue Expansion
Revenue is the strongest observable driver, being the only metric that increased from both the prior quarter and the year-ago quarter.
Higher revenue supports higher absolute operating cash flow and free cash flow compared to last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose, yet operating cash flow was essentially stable, indicating a mixed cash conversion efficiency. Free cash flow margin narrowed slightly from the prior quarter due to a proportionally smaller operating cash flow relative to revenue.
Compared with the immediately preceding quarter, revenue was higher, while operating cash flow, capital expenditure, free cash flow, and margin were all slightly lower and essentially stable. Compared with the same quarter one year earlier, all metrics were higher, with free cash flow and margin showing notable improvement.
Monitor whether the stability in operating cash flow persists if revenue continues to grow.