Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter a year ago. Free cash flow and free cash flow margin improved versus the prior year but weakened sequentially.
- Operating cash flow was lower than the prior quarter and higher than a year ago, while capital expenditure decreased sequentially. The resulting free cash flow margin narrowed from the prior quarter but widened from the prior year.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow margin were lower, indicating a weaker cash conversion. Compared to the same quarter a year ago, all metrics improved, with revenue, operating cash flow, free cash flow, and margin all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$405.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$491.0M
Cash generated by operations before capital spending.
CapEx
$85.6M
Capital spending and related asset purchases.
FCF margin
7.2%
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 | $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% |
| 2023-06-30 | $5.6B | $491.0M | $85.6M | $405.4M | 7.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 150.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Sequential Operating Cash Flow Decline
Operating cash flow decreased significantly from the prior quarter despite a notable increase in revenue. This decline was the primary factor behind the sequential drop in free cash flow and free cash flow margin.
The reduced operating cash flow drove a sharp sequential contraction in free cash flow margin, signaling a temporary change in cash conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter and higher than a year ago, while capital expenditure decreased sequentially. The resulting free cash flow margin narrowed from the prior quarter but widened from the prior year.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow margin were lower, indicating a weaker cash conversion. Compared to the same quarter a year ago, all metrics improved, with revenue, operating cash flow, free cash flow, and margin all higher.
Monitor the proportion of client cash included in the company’s cash balance, as disclosed in the filing, which may affect the comparability of operating cash flow trends.