Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Omnicom's free cash flow remained negative for the quarter, driven by a substantial operating cash outflow. The deficit narrowed from the prior quarter but widened compared to the same quarter a year ago.
- Revenue was stable, yet operating cash flow was negative, leading to a negative free cash flow after capital expenditure. The free cash flow margin was negative, indicating cash conversion was unfavorable.
- Compared to the previous quarter, both operating cash flow and free cash flow improved, though still negative. Relative to the same quarter last year, operating cash flow and free cash flow weakened, with the free cash flow margin declining.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$806.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
-$279.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
-$262.5M
Cash generated by operations before capital spending.
CapEx
$16.9M
Capital spending and related asset purchases.
FCF margin
-7.7%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $3.4B | $489.3M | $23.1M | $466.2M | 13.5% |
| 2022-12-31 | $3.9B | $1.2B | $12.6M | $1.2B | 30.1% |
| 2023-03-31 | $3.4B | -$522.1M | $23.1M | -$545.2M | -15.8% |
| 2023-06-30 | $3.6B | -$262.5M | $16.9M | -$279.4M | -7.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -76.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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.
Sequential operating cash flow improvement
Operating cash flow, while still negative, was significantly less negative than in the prior quarter, reducing the free cash outflow.
This helped narrow the free cash flow deficit compared to the first quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, yet operating cash flow was negative, leading to a negative free cash flow after capital expenditure. The free cash flow margin was negative, indicating cash conversion was unfavorable.
Compared to the previous quarter, both operating cash flow and free cash flow improved, though still negative. Relative to the same quarter last year, operating cash flow and free cash flow weakened, with the free cash flow margin declining.
Monitor the decline in cash and cash equivalents from year-end, as shown in the balance sheet within the filing.