Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter last year. The cash conversion rate rose from the prior quarter, though operating cash flow remained below the year-ago level.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow improved sequentially but was lower than the same quarter last year, leading to a free cash flow margin that strengthened from the prior quarter yet weakened year over year.
- Compared to the prior quarter, revenue and operating cash flow were higher, and free cash flow improved significantly. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weaker free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$294.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$381.0M
Cash generated by operations before capital spending.
CapEx
$87.0M
Capital spending and related asset purchases.
FCF margin
7.8%
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 | $3.6B | $759.0M | $74.0M | $685.0M | 18.9% |
| 2022-12-31 | $3.8B | $739.0M | $93.0M | $646.0M | 17.0% |
| 2023-03-31 | $3.4B | $71.0M | $62.0M | $9.0M | 0.3% |
| 2023-06-30 | $3.8B | $381.0M | $87.0M | $294.0M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 58.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$12.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Sequential Free Cash Flow Recovery
Free cash flow rose sharply from the prior quarter, driven by a substantial increase in operating cash flow. Capital expenditure was slightly higher but remained manageable.
The sequential improvement in free cash flow strengthened the company's cash generation profile for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow improved sequentially but was lower than the same quarter last year, leading to a free cash flow margin that strengthened from the prior quarter yet weakened year over year.
Compared to the prior quarter, revenue and operating cash flow were higher, and free cash flow improved significantly. Versus the same quarter last year, revenue was higher but operating cash flow and free cash flow were lower, resulting in a weaker free cash flow margin.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite higher revenue.