Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased and operating cash flow turned positive, resulting in positive free cash flow and margin. The company moved from negative free cash flow in the prior quarter and year-ago quarter to positive free cash flow.
- Operating cash flow improved significantly from negative to positive, while capital expenditure remained relatively stable, leading to a positive free cash flow and improved margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved. Compared to the same quarter one year earlier, revenue was higher and free cash flow turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$40.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$93.0M
Cash generated by operations before capital spending.
CapEx
$53.0M
Capital spending and related asset purchases.
FCF margin
1.7%
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 |
|---|---|---|---|---|---|
| 2022-10-01 | $2.4B | $388.0M | $70.0M | $318.0M | 13.4% |
| 2022-12-31 | $2.7B | $1.3B | $73.0M | $1.2B | 44.3% |
| 2023-04-01 | $2.2B | -$8.0M | $54.0M | -$62.0M | -2.9% |
| 2023-07-01 | $2.4B | $93.0M | $53.0M | $40.0M | 1.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 10.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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.
Revenue growth and operating cash flow improvement
Revenue increased from both the prior quarter and the year-ago quarter, while operating cash flow improved markedly from negative to positive, driving free cash flow to turn positive.
The improved cash conversion enhances liquidity and financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved significantly from negative to positive, while capital expenditure remained relatively stable, leading to a positive free cash flow and improved margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all improved. Compared to the same quarter one year earlier, revenue was higher and free cash flow turned positive.
Monitor the sustainability of positive operating cash flow given the prior quarter's negative figure and the ongoing volatility in cash conversion.