Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved compared to the prior quarter and the year-ago quarter. Free cash flow rose from both the preceding and year-ago periods, supported by a higher free cash flow margin.
- Revenue was reported at over four billion dollars. Operating cash flow of over seven hundred million dollars less capital expenditure of over one hundred million dollars yielded free cash flow of over six hundred million dollars, resulting in a free cash flow margin above fifteen percent.
- Operating cash flow and free cash flow were higher than the immediately preceding quarter and the same quarter one year earlier. The free cash flow margin improved compared to the prior year same quarter and was not reported for the preceding quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$615.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$728.0M
Cash generated by operations before capital spending.
CapEx
$113.0M
Capital spending and related asset purchases.
FCF margin
15.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | n/a | $501.0M | $81.0M | $420.0M | n/a |
| 2022-09-30 | n/a | $713.0M | $101.0M | $612.0M | n/a |
| 2022-12-31 | n/a | $811.0M | $156.0M | $655.0M | n/a |
| 2023-03-31 | $4.0B | $728.0M | $113.0M | $615.0M | 15.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.8% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.2B | 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 Growth
Operating cash flow was higher sequentially and year-over-year, which was the primary observable driver of the increase in free cash flow.
The higher operating cash flow directly contributed to the improved free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was reported at over four billion dollars. Operating cash flow of over seven hundred million dollars less capital expenditure of over one hundred million dollars yielded free cash flow of over six hundred million dollars, resulting in a free cash flow margin above fifteen percent.
Operating cash flow and free cash flow were higher than the immediately preceding quarter and the same quarter one year earlier. The free cash flow margin improved compared to the prior year same quarter and was not reported for the preceding quarter.
Monitor the relationship between operating cash flow and capital expenditure, as capital expenditure has decreased from both the prior quarter and the year-ago period.