Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow increased compared to both the prior quarter and the same quarter last year. Free cash flow improved sequentially but its margin was slightly lower than the year-ago period.
- Operating cash flow rose more than revenue from the preceding quarter, lifting the free cash flow margin. However, compared to a year earlier, the margin was slightly lower despite higher absolute free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin improving from the prior level. Relative to the same quarter one year earlier, revenue and cash flows were higher, but the free cash flow margin weakened marginally.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$858.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$238.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$266.8M
Cash generated by operations before capital spending.
CapEx
$28.8M
Capital spending and related asset purchases.
FCF margin
24.2%
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 | $985.8M | $245.4M | $26.8M | $218.6M | 22.2% |
| 2022-12-31 | $1.1B | $303.6M | $32.0M | $271.6M | 25.7% |
| 2023-03-31 | $928.7M | $153.3M | $23.2M | $130.1M | 14.0% |
| 2023-06-30 | $982.1M | $266.8M | $28.8M | $238.1M | 24.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue and Operating Cash Flow Growth
Revenue increased from both comparison periods, and operating cash flow grew at a faster pace, driving free cash flow higher. The filing attributes the six-month operating cash flow increase to working capital and lower cash incentive payments.
This growth strengthens the company's liquidity position and supports its capital allocation plans.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose more than revenue from the preceding quarter, lifting the free cash flow margin. However, compared to a year earlier, the margin was slightly lower despite higher absolute free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow all increased, with free cash flow margin improving from the prior level. Relative to the same quarter one year earlier, revenue and cash flows were higher, but the free cash flow margin weakened marginally.
Monitor the free cash flow margin trend, which improved sequentially but remained slightly below the year-ago level.