Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined compared to both the prior quarter and the same period a year earlier. Free cash flow margin weakened sharply from the prior quarter but improved from the year-ago level.
- Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter one year earlier, supporting a free cash flow margin that followed the same pattern after deducting minimal capital expenditure.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin declined significantly. Versus the year-ago quarter, revenue was lower but operating cash flow and free cash flow were higher, producing an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$312.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$315.5M
Cash generated by operations before capital spending.
CapEx
$2.7M
Capital spending and related asset purchases.
FCF margin
14.4%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $2.7B | $137.9M | $4.7M | $133.2M | 5.0% |
| 2022-09-30 | $2.8B | $605.7M | $3.2M | $602.5M | 21.7% |
| 2022-12-31 | $2.7B | $817.2M | $6.5M | $810.7M | 29.9% |
| 2023-03-31 | $2.2B | $315.5M | $2.7M | $312.8M | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | 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.
Operating cash flow contraction
Operating cash flow fell from both the prior quarter and, while higher than the year-ago period, the sequential drop was materially larger than the decline in revenue.
This was the strongest observable factor pulling the free cash flow margin lower sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was lower than the prior quarter but higher than the same quarter one year earlier, supporting a free cash flow margin that followed the same pattern after deducting minimal capital expenditure.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all decreased, and the free cash flow margin declined significantly. Versus the year-ago quarter, revenue was lower but operating cash flow and free cash flow were higher, producing an improved free cash flow margin.
Monitor whether the trend in operating cash flow relative to revenue stabilizes given its sequential decline.