Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive compared to the same quarter a year earlier, significantly improving free cash flow and margin. However, both revenue and operating cash flow declined from the prior quarter, while capital expenditure increased.
- Free cash flow was generated from operating cash flow after capital expenditure, with the margin remaining above one hundred percent. Revenue was lower than both the prior quarter and the year-ago quarter, but the cash conversion profile strengthened relative to the prior year.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow and margin improved substantially, from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$532.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$582.0M
Cash generated by operations before capital spending.
CapEx
$50.0M
Capital spending and related asset purchases.
FCF margin
152.9%
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 | $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% |
| 2023-06-30 | $348.0M | $582.0M | $50.0M | $532.0M | 152.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 185.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 14.4% | 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 Reversal
Operating cash flow turned from negative in the year-ago quarter to positive in the current quarter, which was the most significant observable change. This shift directly enabled positive free cash flow and a high margin, even though revenue was lower year over year.
The swing in operating cash flow was the strongest driver of the improvement in free cash flow and margin compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Free cash flow was generated from operating cash flow after capital expenditure, with the margin remaining above one hundred percent. Revenue was lower than both the prior quarter and the year-ago quarter, but the cash conversion profile strengthened relative to the prior year.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow and margin improved substantially, from negative to positive.
Monitor the trend in capital expenditure, which increased from the prior quarter and may affect future free cash flow conversion.