Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive from the prior quarter, driven by a sharp improvement in operating cash flow despite lower capital expenditure. Revenue held steady year over year and sequentially, while free cash flow margin moved well above the prior-year level.
- Operating cash flow improved markedly from the prior quarter, while capital expenditure decreased, leading to a strong swing in free cash flow. The free cash flow margin expanded significantly compared with both the immediate prior quarter and the same quarter one year earlier, reflecting higher cash conversion from the same level of revenue.
- Compared with the immediately preceding quarter, operating cash flow increased substantially and free cash flow reversed from negative to positive. Versus the same quarter one year earlier, revenue and operating cash flow were higher, and free cash flow improved meaningfully, with the margin widening.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$580.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$188.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$229.0M
Cash generated by operations before capital spending.
CapEx
$41.0M
Capital spending and related asset purchases.
FCF margin
11.4%
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 | $1.4B | $65.0M | $42.0M | $23.0M | 1.6% |
| 2022-12-31 | $1.5B | $455.0M | $45.0M | $410.0M | 27.1% |
| 2023-03-31 | $1.6B | $23.0M | $64.0M | -$41.0M | -2.6% |
| 2023-06-30 | $1.6B | $229.0M | $41.0M | $188.0M | 11.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 97.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.5B | 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 surge
Operating cash flow rose sharply from the prior quarter and also increased from the year-ago quarter. This was the primary factor behind the swing in free cash flow.
The increase in operating cash flow directly elevated free cash flow and the corresponding margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved markedly from the prior quarter, while capital expenditure decreased, leading to a strong swing in free cash flow. The free cash flow margin expanded significantly compared with both the immediate prior quarter and the same quarter one year earlier, reflecting higher cash conversion from the same level of revenue.
Compared with the immediately preceding quarter, operating cash flow increased substantially and free cash flow reversed from negative to positive. Versus the same quarter one year earlier, revenue and operating cash flow were higher, and free cash flow improved meaningfully, with the margin widening.
Monitor the trajectory of operating cash flow, which drove the period's free cash flow swing, to see if the improvement persists.