Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was lower than both the prior quarter and the same quarter a year earlier, driven by a decline in operating cash flow. The free cash flow margin weakened compared to both periods.
- Revenue decreased while operating cash flow declined more sharply, resulting in a lower free cash flow. Capital expenditure was slightly lower than the prior quarter but higher than a year ago.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter a year earlier, revenue was lower, operating cash flow and free cash flow were lower, and the margin also weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$694.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$718.0M
Cash generated by operations before capital spending.
CapEx
$24.0M
Capital spending and related asset purchases.
FCF margin
185.1%
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 | $401.0M | -$78.0M | $24.0M | -$102.0M | -25.4% |
| 2022-09-30 | $377.0M | $2.1B | $19.0M | $2.1B | 546.9% |
| 2022-12-31 | $457.0M | $1.6B | $35.0M | $1.6B | 339.2% |
| 2023-03-31 | $375.0M | $718.0M | $24.0M | $694.0M | 185.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 222.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Decline
Operating cash flow decreased compared to both the prior quarter and the same quarter a year earlier, which directly reduced free cash flow. This was the strongest observable driver of the quarter's performance.
The lower operating cash flow was the primary reason for the weakened free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue decreased while operating cash flow declined more sharply, resulting in a lower free cash flow. Capital expenditure was slightly lower than the prior quarter but higher than a year ago.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all lower, and the free cash flow margin weakened. Versus the same quarter a year earlier, revenue was lower, operating cash flow and free cash flow were lower, and the margin also weakened.
Monitor the trend in operating cash flow, as its decline was the primary factor behind the lower free cash flow.