Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a significant increase in operating cash flow. Compared to the same quarter last year, free cash flow was lower, reflecting a decrease in operating cash flow despite lower capital expenditure.
- The company converted a lower revenue base into a higher free cash flow margin than the prior quarter, as operating cash flow more than offset capital spending. The free cash flow margin remained above one hundred percent, indicating operating cash flow exceeded revenue.
- Compared to the immediately preceding quarter, free cash flow and margin improved markedly, while revenue was lower. Versus the same quarter one year earlier, free cash flow and margin declined, as operating cash flow was substantially lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$598.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$630.0M
Cash generated by operations before capital spending.
CapEx
$32.0M
Capital spending and related asset purchases.
FCF margin
180.1%
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 | $345.0M | $846.0M | $42.0M | $804.0M | 233.0% |
| 2022-12-31 | $343.0M | $1.4B | $49.0M | $1.3B | 381.3% |
| 2023-03-31 | $377.0M | $130.0M | $25.0M | $105.0M | 27.9% |
| 2023-06-30 | $332.0M | $630.0M | $32.0M | $598.0M | 180.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 9.6% | 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 Recovery
Operating cash flow increased substantially from the prior quarter, leading to a higher free cash flow despite a slight decline in revenue. This improvement was the primary factor behind the quarter's free cash flow margin increase.
The recovery in operating cash flow drove the quarter's free cash flow and margin higher relative to the prior period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a lower revenue base into a higher free cash flow margin than the prior quarter, as operating cash flow more than offset capital spending. The free cash flow margin remained above one hundred percent, indicating operating cash flow exceeded revenue.
Compared to the immediately preceding quarter, free cash flow and margin improved markedly, while revenue was lower. Versus the same quarter one year earlier, free cash flow and margin declined, as operating cash flow was substantially lower.
Monitor the parent company's cash and cash equivalents and dividend declarations as highlighted in the filing, given their role in liquidity management.