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 last year, but operating cash flow declined from the prior quarter and was stable versus the year-ago period. Free cash flow and free cash flow margin weakened sequentially and were slightly lower than the year-ago quarter.
- Revenue rose while operating cash flow fell from the prior quarter, leading to a lower free cash flow and a narrower free cash flow margin. Compared to the year-ago quarter, revenue was higher but operating cash flow was similar, resulting in a slightly lower free cash flow and margin.
- Sequentially, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened; capital expenditure was slightly higher. Versus the same quarter last year, revenue was higher, operating cash flow was stable, capital expenditure increased, and free cash flow and margin were slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.4B
Trailing twelve-month free cash flow.
Quarter free cash flow
$552.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$651.0M
Cash generated by operations before capital spending.
CapEx
$99.0M
Capital spending and related asset purchases.
FCF margin
9.1%
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 | $5.3B | $874.0M | $73.0M | $801.0M | 15.1% |
| 2022-12-31 | $5.9B | $441.0M | $140.0M | $301.0M | 5.1% |
| 2023-03-31 | $5.6B | $887.0M | $95.0M | $792.0M | 14.1% |
| 2023-06-30 | $6.1B | $651.0M | $99.0M | $552.0M | 9.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 76.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | $507.0M | 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
Operating cash flow decreased from the prior quarter and was flat versus the year-ago quarter, despite higher revenue in both comparisons. This directly reduced free cash flow and compressed the free cash flow margin.
If operating cash flow does not improve with further revenue growth, free cash flow generation may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell from the prior quarter, leading to a lower free cash flow and a narrower free cash flow margin. Compared to the year-ago quarter, revenue was higher but operating cash flow was similar, resulting in a slightly lower free cash flow and margin.
Sequentially, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened; capital expenditure was slightly higher. Versus the same quarter last year, revenue was higher, operating cash flow was stable, capital expenditure increased, and free cash flow and margin were slightly lower.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially and did not grow with revenue compared to the prior year.