Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow margin strengthened significantly versus the prior quarter but was lower than the year-ago quarter.
- Operating cash flow exceeded revenue, resulting in a free cash flow margin above one hundred percent. Capital expenditure was negligible, so free cash flow equaled operating cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Compared to the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$476.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$828.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$828.0M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
187.8%
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 | $318.0M | -$1.3B | $6.0M | -$1.3B | -399.1% |
| 2022-09-30 | $361.0M | -$207.0M | $6.0M | -$213.0M | -59.0% |
| 2022-12-31 | $380.0M | $181.0M | $3.0M | $178.0M | 46.8% |
| 2023-03-31 | $441.0M | $828.0M | $0 | $828.0M | 187.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -162.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | 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 Strength
Operating cash flow was the strongest observable driver, exceeding revenue and driving free cash flow to match it. This was a significant increase from both the prior quarter and the year-ago quarter.
The elevated operating cash flow directly produced a free cash flow margin above one hundred percent.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue, resulting in a free cash flow margin above one hundred percent. Capital expenditure was negligible, so free cash flow equaled operating cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the free cash flow margin improved. Compared to the same quarter last year, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.