Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive and free cash flow improved significantly compared to the prior quarter. Free cash flow margin strengthened versus both the prior quarter and the same quarter last year.
- Revenue was slightly higher than the prior quarter and comparable to the same quarter last year. Operating cash flow and free cash flow both increased substantially, leading to a higher free cash flow margin.
- Compared to the prior quarter, operating cash flow shifted from negative to positive, and free cash flow turned positive with a much stronger margin. Versus the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$233.0M
Capital spending and related asset purchases.
FCF margin
12.3%
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 | $9.0B | $2.1B | $184.0M | $1.9B | 21.2% |
| 2022-12-31 | $9.2B | $2.4B | $241.0M | $2.1B | 23.1% |
| 2023-03-31 | $8.9B | -$784.0M | $193.0M | -$977.0M | -11.0% |
| 2023-06-30 | $9.1B | $1.4B | $233.0M | $1.1B | 12.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.9B | 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 Recovery
Operating cash flow improved markedly from a negative position in the prior quarter to a positive level, and was higher than the same quarter last year. This was the strongest observable driver of the free cash flow improvement.
The recovery in operating cash flow directly supported the increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter and comparable to the same quarter last year. Operating cash flow and free cash flow both increased substantially, leading to a higher free cash flow margin.
Compared to the prior quarter, operating cash flow shifted from negative to positive, and free cash flow turned positive with a much stronger margin. Versus the same quarter last year, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor whether operating cash flow can sustain its positive level in the coming quarters.