Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were higher than the same quarter a year earlier but lower than the prior quarter. The filing notes forward-looking statements about macroeconomic and industry risks.
- Operating cash flow converted to free cash flow after capital expenditure, resulting in a free cash flow margin that improved year-over-year but weakened sequentially.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were lower, while capital expenditure was higher. Compared to the same quarter a year earlier, all metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$286.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$330.0M
Cash generated by operations before capital spending.
CapEx
$44.0M
Capital spending and related asset purchases.
FCF margin
12.5%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $2.2B | $333.0M | $7.0M | $326.0M | 14.6% |
| 2022-09-30 | $2.4B | $671.0M | $8.0M | $663.0M | 28.0% |
| 2022-12-31 | $2.4B | $482.0M | $20.0M | $462.0M | 18.9% |
| 2023-03-31 | $2.3B | $330.0M | $44.0M | $286.0M | 12.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 138.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | 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
Operating cash flow decreased from the prior quarter but increased from the same quarter a year earlier.
The sequential decline in operating cash flow was a primary factor in the lower free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow converted to free cash flow after capital expenditure, resulting in a free cash flow margin that improved year-over-year but weakened sequentially.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were lower, while capital expenditure was higher. Compared to the same quarter a year earlier, all metrics were higher.
Monitor the level of capital expenditure, which increased sequentially.