Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter showed improved cash generation with higher revenue and operating cash flow, resulting in a higher free cash flow margin. Free cash flow increased compared to both the prior quarter and the same quarter last year.
- Revenue growth combined with a proportionally larger increase in operating cash flow led to a higher free cash flow margin. Capital expenditure remained modest relative to operating cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, with free cash flow margin improving. Versus the same quarter last year, all metrics were higher, and the margin strengthened significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$282.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$291.8M
Cash generated by operations before capital spending.
CapEx
$9.2M
Capital spending and related asset purchases.
FCF margin
45.5%
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 | $560.6M | $323.1M | $3.3M | $319.8M | 57.0% |
| 2022-12-31 | $576.2M | $315.4M | $5.6M | $309.8M | 53.8% |
| 2023-03-31 | $592.2M | $264.1M | $6.2M | $257.9M | 43.6% |
| 2023-06-30 | $621.2M | $291.8M | $9.2M | $282.7M | 45.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved Operating Cash Flow
Operating cash flow grew from both the prior quarter and the year-ago quarter, supporting higher free cash flow.
The increase in operating cash flow was the primary contributor to the improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth combined with a proportionally larger increase in operating cash flow led to a higher free cash flow margin. Capital expenditure remained modest relative to operating cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were higher, with free cash flow margin improving. Versus the same quarter last year, all metrics were higher, and the margin strengthened significantly.
Monitor the trend in capital expenditure, as it increased from both comparative periods.