Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue in the current quarter was lower than the previous quarter but higher than the same quarter one year earlier. Operating cash flow matched the year-ago level and increased from the prior quarter, while free cash flow and margin improved sequentially but declined compared to the year-ago period.
- The company converted a portion of its revenue into operating cash flow, with capital expenditure deducted to yield free cash flow. The resulting free cash flow margin was higher than the prior quarter but lower than the same quarter last year.
- Compared to the preceding quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow and margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$116.9M
Capital spending and related asset purchases.
FCF margin
33.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $4.4B | $349.1M | $67.8M | $281.4M | 6.3% |
| 2022-09-30 | $6.2B | -$619.1M | $75.7M | -$694.8M | -11.3% |
| 2022-12-31 | $4.3B | $906.7M | $141.2M | $765.5M | 17.8% |
| 2023-03-31 | $3.1B | $1.2B | $116.9M | $1.0B | 33.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -62101.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | 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
Operating cash flow in the current quarter was unchanged from the same quarter a year ago, despite a higher revenue base, and increased from the prior quarter. Capital expenditure was higher than the year-ago quarter but lower than the prior quarter.
This combination resulted in free cash flow that improved sequentially but declined from the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a portion of its revenue into operating cash flow, with capital expenditure deducted to yield free cash flow. The resulting free cash flow margin was higher than the prior quarter but lower than the same quarter last year.
Compared to the preceding quarter, revenue was lower, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin improved. Versus the same quarter one year earlier, revenue was higher, operating cash flow was stable, capital expenditure was higher, and free cash flow and margin weakened.
Monitor the composition of cash and cash equivalents, particularly the amount of client cash, as described in the liquidity discussion.