Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved substantially in the current quarter, with the margin rising compared to both the prior quarter and the same quarter last year. Cash generation strengthened while revenue remained stable year over year.
- Revenue was higher than the preceding quarter and consistent with the year-ago period. Operating cash flow increased at a faster pace than revenue, while capital expenditure was little changed, leading to a higher free cash flow margin.
- Compared to the prior quarter, free cash flow and margin were higher. Versus the same quarter a year earlier, revenue was stable but free cash flow and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$535.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$608.0M
Cash generated by operations before capital spending.
CapEx
$73.0M
Capital spending and related asset purchases.
FCF margin
36.4%
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 | $1.4B | $291.0M | $74.0M | $217.0M | 15.7% |
| 2022-09-30 | $1.3B | $336.0M | $71.0M | $265.0M | 20.8% |
| 2022-12-31 | $1.3B | $377.0M | $79.0M | $298.0M | 23.1% |
| 2023-03-31 | $1.5B | $608.0M | $73.0M | $535.0M | 36.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 106.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.3B | 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 Growth
Operating cash flow was higher sequentially and year over year, providing the strongest observable lift to free cash flow. The margin improvement was underpinned by this increase.
Sustained operating cash flow performance is a key factor for maintaining free cash flow strength.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the preceding quarter and consistent with the year-ago period. Operating cash flow increased at a faster pace than revenue, while capital expenditure was little changed, leading to a higher free cash flow margin.
Compared to the prior quarter, free cash flow and margin were higher. Versus the same quarter a year earlier, revenue was stable but free cash flow and margin improved.
Monitor whether capital expenditure remains steady, as shifts in this item could alter free cash flow trends.