Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved, supported by higher operating cash flow and lower capital expenditure.
- Operating cash flow grew faster than revenue, lifting the free cash flow margin. Capital expenditure was lower than both comparative periods, which also contributed to the increase in free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and free cash flow margin improved significantly. Compared to the same quarter last year, all metrics were also higher, with a more modest margin improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$882.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$993.2M
Cash generated by operations before capital spending.
CapEx
$111.1M
Capital spending and related asset purchases.
FCF margin
38.5%
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 | $2.1B | $793.2M | $110.3M | $682.9M | 32.9% |
| 2022-12-31 | $2.2B | $1.3B | $141.3M | $1.1B | 52.4% |
| 2023-03-31 | $2.2B | $709.5M | $112.7M | $596.8M | 26.7% |
| 2023-06-30 | $2.3B | $993.2M | $111.1M | $882.1M | 38.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 132.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Operating Cash Flow
Operating cash flow increased more than revenue relative to both the prior quarter and the year-ago quarter, while capital expenditure declined.
This contributed to a higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew faster than revenue, lifting the free cash flow margin. Capital expenditure was lower than both comparative periods, which also contributed to the increase in free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all increased, and free cash flow margin improved significantly. Compared to the same quarter last year, all metrics were also higher, with a more modest margin improvement.
Monitor customer order pushouts and cancellations as described in the filing, as these may affect future cash flow.