Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased moderately both sequentially and from the same quarter last year. Free cash flow and free cash flow margin improved, driven by higher operating cash flow.
- Operating cash flow grew faster than revenue compared to the prior quarter, resulting in a higher free cash flow margin. Capital expenditure decreased sequentially, further boosting free cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow increased, while capital expenditure declined. Year over year, operating cash flow and free cash flow also improved, though revenue for the year-ago quarter is not available.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$705.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$790.0M
Cash generated by operations before capital spending.
CapEx
$85.0M
Capital spending and related asset purchases.
FCF margin
17.3%
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 | 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% |
| 2023-06-30 | $4.1B | $790.0M | $85.0M | $705.0M | 17.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$7.3B | 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 both sequentially and year over year, providing the primary support for free cash flow growth.
Higher operating cash flow drove the free cash flow margin higher, despite a modest increase in capital expenditure compared to last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue compared to the prior quarter, resulting in a higher free cash flow margin. Capital expenditure decreased sequentially, further boosting free cash flow.
Compared to the prior quarter, operating cash flow and free cash flow increased, while capital expenditure declined. Year over year, operating cash flow and free cash flow also improved, though revenue for the year-ago quarter is not available.
Monitor capital expenditure trends, as a decrease supported free cash flow this quarter.