Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to the prior year, driven by higher operating cash flow. Relative to the prior quarter, free cash flow and margin showed a slight increase.
- Revenue remained stable while operating cash flow rose significantly compared to the same quarter last year, and capital expenditure declined, resulting in an improved cash conversion rate.
- Compared to the immediately preceding quarter, free cash flow and its margin were slightly higher. Versus the same quarter one year earlier, both free cash flow and margin increased substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$550.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$604.0M
Cash generated by operations before capital spending.
CapEx
$54.0M
Capital spending and related asset purchases.
FCF margin
36.8%
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 | $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% |
| 2023-06-30 | $1.5B | $604.0M | $54.0M | $550.0M | 36.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.9B | 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
The primary observable driver of free cash flow improvement was the sharp increase in operating cash flow relative to the prior year, combined with lower capital expenditure.
This combination lifted free cash flow and margin to a higher level compared to the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable while operating cash flow rose significantly compared to the same quarter last year, and capital expenditure declined, resulting in an improved cash conversion rate.
Compared to the immediately preceding quarter, free cash flow and its margin were slightly higher. Versus the same quarter one year earlier, both free cash flow and margin increased substantially.
Monitor whether the operating cash flow level seen this quarter can be sustained.