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. The free cash flow margin strengthened versus both the preceding quarter and the same quarter one year earlier.
- Revenue was stable compared to the same quarter one year earlier, while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, but the increase in operating cash flow more than offset this.
- Compared to the immediately preceding quarter, operating cash flow shifted from negative to positive, and free cash flow improved from negative to positive. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while revenue was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$280.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$145.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$195.5M
Cash generated by operations before capital spending.
CapEx
$49.9M
Capital spending and related asset purchases.
FCF margin
10.3%
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 | $1.2B | $170.9M | $20.3M | $150.6M | 12.1% |
| 2022-12-31 | $1.1B | $132.2M | $34.1M | $98.1M | 9.0% |
| 2023-03-31 | $1.0B | -$78.8M | $35.4M | -$114.2M | -10.9% |
| 2023-06-30 | $1.4B | $195.5M | $49.9M | $145.6M | 10.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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 positive this quarter after being negative in the prior quarter, and was higher than the same quarter one year earlier. This was the strongest observable driver of the improvement in free cash flow.
The positive swing in operating cash flow directly enabled free cash flow to turn positive and the margin to strengthen.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the same quarter one year earlier, while operating cash flow and free cash flow were higher, leading to an improved free cash flow margin. Capital expenditure was higher than both the prior quarter and the year-ago quarter, but the increase in operating cash flow more than offset this.
Compared to the immediately preceding quarter, operating cash flow shifted from negative to positive, and free cash flow improved from negative to positive. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, while revenue was stable.
Monitor the trend in capital expenditure, as it was higher in both comparisons and could affect future free cash flow conversion.