Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive, driving free cash flow to a positive margin after two consecutive negative quarters. Revenue increased compared to both the prior quarter and the same quarter last year.
- Revenue rose while operating cash flow shifted from negative to positive, resulting in a positive free cash flow margin. Capital expenditure was relatively stable, so the improvement in cash conversion was driven by the swing in operating cash flow.
- Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin strengthened. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow turning positive from negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$615.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$919.0M
Cash generated by operations before capital spending.
CapEx
$304.0M
Capital spending and related asset purchases.
FCF margin
6.4%
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 | $9.0B | $1.3B | $296.0M | $1.0B | 11.6% |
| 2022-12-31 | $10.0B | $2.3B | $632.0M | $1.6B | 16.1% |
| 2023-03-31 | $9.3B | -$702.0M | $309.0M | -$1.0B | -10.9% |
| 2023-06-30 | $9.6B | $919.0M | $304.0M | $615.0M | 6.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$11.5B | 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 Turnaround
Operating cash flow shifted from negative in both the prior quarter and the year-ago quarter to positive in the current quarter. This was the strongest observable driver behind the improvement in free cash flow and margin.
The positive operating cash flow directly enabled a positive free cash flow margin after two quarters of negative margins.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow shifted from negative to positive, resulting in a positive free cash flow margin. Capital expenditure was relatively stable, so the improvement in cash conversion was driven by the swing in operating cash flow.
Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and the free cash flow margin strengthened. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow turning positive from negative.
Monitor whether operating cash flow can sustain its positive trajectory in the coming quarter.