Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the year-ago period. Operating cash flow turned positive, resulting in positive free cash flow and margin, contrasting with negative figures in the two comparison periods.
- With operating cash flow exceeding capital expenditure, the company generated positive free cash flow. The free cash flow margin improved from negative in both the prior quarter and the year-ago quarter.
- Compared to the preceding quarter, revenue was lower while operating cash flow was higher, capital expenditure was lower, and free cash flow improved from negative to positive. Compared to the year-ago quarter, revenue was lower, operating cash flow turned positive from negative, capital expenditure was slightly higher, and free cash flow also improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$265.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$133.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$248.0M
Cash generated by operations before capital spending.
CapEx
$115.0M
Capital spending and related asset purchases.
FCF margin
4.5%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $3.1B | $240.0M | $108.0M | $132.0M | 4.3% |
| 2022-12-31 | $2.8B | $208.0M | $160.0M | $48.0M | 1.7% |
| 2023-03-31 | $3.0B | $127.0M | $175.0M | -$48.0M | -1.6% |
| 2023-06-30 | $2.9B | $248.0M | $115.0M | $133.0M | 4.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 492.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.8B | 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 from negative in the year-ago quarter to positive in the current quarter, and also increased from the prior quarter. This was the primary factor behind the swing from negative to positive free cash flow.
The improvement in operating cash flow directly enabled the company to generate positive free cash flow after covering capital investments.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With operating cash flow exceeding capital expenditure, the company generated positive free cash flow. The free cash flow margin improved from negative in both the prior quarter and the year-ago quarter.
Compared to the preceding quarter, revenue was lower while operating cash flow was higher, capital expenditure was lower, and free cash flow improved from negative to positive. Compared to the year-ago quarter, revenue was lower, operating cash flow turned positive from negative, capital expenditure was slightly higher, and free cash flow also improved from negative to positive.
Monitor whether operating cash flow can sustain its positive level relative to capital expenditure in future quarters.