Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved versus the prior quarter, leading to higher free cash flow and a slightly improved margin. Compared to the same quarter last year, free cash flow was significantly lower despite higher revenue, as operating cash flow declined sharply.
- Operating cash flow as a proportion of revenue was lower than the prior quarter and substantially lower than the same quarter last year, resulting in a free cash flow margin that improved sequentially but weakened year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with free cash flow margin improving slightly. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were substantially lower, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$321.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$414.0M
Cash generated by operations before capital spending.
CapEx
$93.0M
Capital spending and related asset purchases.
FCF margin
6.8%
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 | $4.2B | $588.0M | $64.0M | $524.0M | 12.3% |
| 2022-12-30 | $4.6B | $782.0M | $71.0M | $711.0M | 15.5% |
| 2023-03-31 | $4.5B | $350.0M | $71.0M | $279.0M | 6.2% |
| 2023-06-30 | $4.7B | $414.0M | $93.0M | $321.0M | 6.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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 Decline
The most observable driver was the substantial year-over-year reduction in operating cash flow, which fell from a much higher level in the prior year quarter even as revenue increased. This was the primary factor behind the lower free cash flow and margin compared to the same quarter last year.
The lower operating cash flow directly reduced free cash flow and free cash flow margin compared to the prior year quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter and substantially lower than the same quarter last year, resulting in a free cash flow margin that improved sequentially but weakened year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, and free cash flow were all higher, with free cash flow margin improving slightly. Versus the same quarter one year earlier, revenue was higher but operating cash flow and free cash flow were substantially lower, and free cash flow margin weakened.
Monitor the trajectory of operating cash flow, which declined sharply year over year despite higher revenue.