Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined from the prior quarter but rose sharply relative to the same quarter last year. The free cash flow margin improved significantly year-over-year, though it weakened sequentially.
- Operating cash flow of the current quarter funded capital expenditure, yielding free cash flow and a margin that was higher than a year ago but lower than the previous quarter. The conversion from revenue to operating cash flow improved year-over-year but weakened sequentially.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all decreased, and the margin weakened. Versus the same quarter last year, revenue declined but operating cash flow and free cash flow increased substantially, leading to a much higher margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.7B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$78.7M
Capital spending and related asset purchases.
FCF margin
32.6%
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 |
|---|---|---|---|---|---|
| 2022-09-25 | $5.1B | $1.2B | $140.1M | $1.0B | 20.7% |
| 2022-12-25 | $5.3B | $1.1B | $163.4M | $976.8M | 18.5% |
| 2023-03-26 | $3.9B | $1.7B | $119.5M | $1.6B | 41.5% |
| 2023-06-25 | $3.2B | $1.1B | $78.7M | $1.0B | 32.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $371.7M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Free Cash Flow Margin Improvement
The free cash flow margin rose compared to the same quarter last year, driven by a higher proportion of operating cash flow relative to revenue despite lower revenue.
This improvement contributed to a substantial increase in free cash flow compared to the year-ago quarter, even as revenue was lower.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow of the current quarter funded capital expenditure, yielding free cash flow and a margin that was higher than a year ago but lower than the previous quarter. The conversion from revenue to operating cash flow improved year-over-year but weakened sequentially.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all decreased, and the margin weakened. Versus the same quarter last year, revenue declined but operating cash flow and free cash flow increased substantially, leading to a much higher margin.
Monitor the trend in free cash flow margin as revenue changes, given the divergent movements between revenue and operating cash flow.