Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and was higher than the same quarter last year, driven by a strong increase in operating cash flow. The free cash flow margin expanded significantly compared to both periods.
- Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow rose substantially from both comparison periods. Capital expenditure decreased relative to both the prior quarter and the year-ago quarter, supporting a higher free cash flow and an expanded free cash flow margin.
- Compared to the prior quarter, free cash flow was higher and the margin improved, as operating cash flow increased while capital expenditure decreased. Versus the same quarter last year, free cash flow and margin were also higher, with operating cash flow rising and capital expenditure declining.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.3B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$140.0M
Capital spending and related asset purchases.
FCF margin
234.4%
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 | $500.0M | $1.2B | $125.0M | $1.1B | 224.2% |
| 2022-12-31 | $567.0M | $622.0M | $223.0M | $399.0M | 70.4% |
| 2023-03-31 | $571.0M | $719.0M | $159.0M | $560.0M | 98.1% |
| 2023-06-30 | $552.0M | $1.4B | $140.0M | $1.3B | 234.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 359.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 25.4% | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, while revenue was only moderately changed. This was the strongest observable driver of the free cash flow improvement.
The increase in operating cash flow directly lifted free cash flow and expanded the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow rose substantially from both comparison periods. Capital expenditure decreased relative to both the prior quarter and the year-ago quarter, supporting a higher free cash flow and an expanded free cash flow margin.
Compared to the prior quarter, free cash flow was higher and the margin improved, as operating cash flow increased while capital expenditure decreased. Versus the same quarter last year, free cash flow and margin were also higher, with operating cash flow rising and capital expenditure declining.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.