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 increased compared to the prior quarter and the same quarter one year earlier. Free cash flow margin improved significantly as capital expenditure declined from the prior quarter and was lower than the year-ago level.
- Revenue rose alongside operating cash flow, which grew faster than revenue, while capital expenditure decreased. This combination drove free cash flow higher and lifted the free cash flow margin.
- Compared to the preceding quarter, operating cash flow was higher and capital expenditure was lower, resulting in improved free cash flow and margin. Versus the same quarter one year earlier, operating cash flow was substantially higher, while capital expenditure was slightly lower, leading to a much stronger free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$592.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$172.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$200.3M
Cash generated by operations before capital spending.
CapEx
$27.5M
Capital spending and related asset purchases.
FCF margin
18.3%
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 | $841.7M | $189.0M | $37.7M | $151.3M | 18.0% |
| 2022-12-31 | $828.6M | $173.4M | $49.2M | $124.2M | 15.0% |
| 2023-03-31 | $900.2M | $183.9M | $39.5M | $144.4M | 16.0% |
| 2023-06-30 | $943.6M | $200.3M | $27.5M | $172.8M | 18.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$639.0M | 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 Improvement
Operating cash flow increased substantially compared to the same quarter last year and also rose from the prior quarter, while revenue grew moderately. Capital expenditure remained relatively stable, allowing free cash flow to expand at a faster pace.
The higher operating cash flow, combined with controlled capital expenditure, improved the free cash flow margin and strengthened the company's cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose alongside operating cash flow, which grew faster than revenue, while capital expenditure decreased. This combination drove free cash flow higher and lifted the free cash flow margin.
Compared to the preceding quarter, operating cash flow was higher and capital expenditure was lower, resulting in improved free cash flow and margin. Versus the same quarter one year earlier, operating cash flow was substantially higher, while capital expenditure was slightly lower, leading to a much stronger free cash flow margin.
Monitor the trend in capital expenditure relative to operating cash flow, as it directly influences free cash flow margin.