Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive in the current quarter, driving a substantial improvement in free cash flow and margin compared to the preceding quarter. Revenue remained stable, while capital expenditure increased relative to both prior periods.
- Revenue was stable versus the prior quarter but lower than a year ago. Operating cash flow rose sharply from a negative figure in the preceding quarter and was higher than the same quarter last year, leading to a positive free cash flow and a significantly improved free cash flow margin.
- Compared to the preceding quarter, free cash flow turned positive and the margin improved markedly, driven by the swing in operating cash flow. Versus the same quarter one year earlier, both operating cash flow and free cash flow were higher, despite a decline in revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$967.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$284.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$331.3M
Cash generated by operations before capital spending.
CapEx
$46.7M
Capital spending and related asset purchases.
FCF margin
19.7%
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 | $492.0M | $62.7M | $429.3M | 29.7% |
| 2022-12-31 | $1.4B | $463.5M | $73.1M | $390.4M | 27.0% |
| 2023-03-31 | $1.4B | -$98.9M | $38.1M | -$137.0M | -9.7% |
| 2023-06-30 | $1.4B | $331.3M | $46.7M | $284.6M | 19.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 215.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$478.7M | 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 turned from a negative figure in the preceding quarter to a positive amount, which was also higher than the same quarter last year. This reversal was the primary factor behind the improvement in free cash flow and margin.
The company generated positive free cash flow in the current quarter after a negative outcome in the prior quarter, with a margin that was higher than both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter but lower than a year ago. Operating cash flow rose sharply from a negative figure in the preceding quarter and was higher than the same quarter last year, leading to a positive free cash flow and a significantly improved free cash flow margin.
Compared to the preceding quarter, free cash flow turned positive and the margin improved markedly, driven by the swing in operating cash flow. Versus the same quarter one year earlier, both operating cash flow and free cash flow were higher, despite a decline in revenue.
Capital expenditure increased relative to both the prior quarter and the year-ago period, a trend that may affect future free cash flow if it continues.