Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive and free cash flow improved significantly compared to the prior quarter. Revenue was higher than both the previous quarter and the same quarter last year.
- Revenue increased while operating cash flow shifted from negative to positive, resulting in a positive free cash flow margin. Capital expenditure was slightly higher than the prior quarter but remained stable relative to revenue.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, and free cash flow margin strengthened. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$761.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$124.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$164.0M
Cash generated by operations before capital spending.
CapEx
$40.0M
Capital spending and related asset purchases.
FCF margin
3.3%
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 | $729.0M | $27.0M | $702.0M | 19.6% |
| 2022-12-30 | $3.7B | $125.0M | $53.0M | $72.0M | 2.0% |
| 2023-03-31 | $3.7B | -$98.0M | $39.0M | -$137.0M | -3.7% |
| 2023-06-30 | $3.8B | $164.0M | $40.0M | $124.0M | 3.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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 recovery
Operating cash flow turned from negative in the prior quarter to positive in the current quarter, which was the primary factor behind the improvement in free cash flow.
This shift drove free cash flow from negative to positive and lifted the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow shifted from negative to positive, resulting in a positive free cash flow margin. Capital expenditure was slightly higher than the prior quarter but remained stable relative to revenue.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved from negative to positive, and free cash flow margin strengthened. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor whether operating cash flow can sustain its positive level in the coming quarter.