Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved compared to both the prior quarter and the same quarter a year ago. The free cash flow margin weakened slightly versus the prior quarter but remained broadly stable against the year-ago period.
- Operating cash flow was lower than the prior quarter but matched the year-ago level, while capital expenditure was higher than both comparative periods. The resulting free cash flow was above the prior quarter and slightly below the year-ago quarter.
- Compared to the prior quarter, revenue improved but operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter a year ago, revenue and operating cash flow improved, while free cash flow was slightly lower and the margin weakened moderately.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$900.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$223.0M
Capital spending and related asset purchases.
FCF margin
9.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $7.3B | $836.0M | $218.0M | $618.0M | 8.5% |
| 2022-09-30 | $7.8B | $549.0M | $236.0M | $313.0M | 4.0% |
| 2022-12-31 | $8.7B | $1.4B | $285.0M | $1.1B | 12.7% |
| 2023-03-31 | $9.2B | $1.1B | $223.0M | $900.0M | 9.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 43.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Revenue Growth
Revenue was higher than both the prior quarter and the same quarter a year ago, providing the primary observable support for free cash flow.
Higher revenue contributed to free cash flow improvement relative to both the prior quarter and the year-ago quarter.
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 but matched the year-ago level, while capital expenditure was higher than both comparative periods. The resulting free cash flow was above the prior quarter and slightly below the year-ago quarter.
Compared to the prior quarter, revenue improved but operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Versus the same quarter a year ago, revenue and operating cash flow improved, while free cash flow was slightly lower and the margin weakened moderately.
Monitor capital expenditure trends, as the amount was elevated compared to both the prior and year-ago quarters.