Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue decreased compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow remained positive, a significant improvement from the negative cash flow a year ago, but lower than the prior quarter.
- Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin, while positive, was lower than the previous quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow all decreased. Compared to the same quarter last year, revenue was lower, but cash flows turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$931.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$940.0M
Cash generated by operations before capital spending.
CapEx
$9.0M
Capital spending and related asset purchases.
FCF margin
47.1%
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 | -$322.0M | $13.0M | -$335.0M | -10.0% |
| 2022-12-31 | $2.9B | $1.4B | $4.0M | $1.4B | 48.7% |
| 2023-03-31 | $3.1B | $2.2B | $8.0M | $2.2B | 69.0% |
| 2023-06-30 | $2.0B | $940.0M | $9.0M | $931.0M | 47.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 4047.8% | 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.
Year-over-year cash flow turnaround
Free cash flow shifted from negative to positive compared to the same quarter one year earlier, reflecting a substantial change in operating cash flow. The company's filing notes that the residential real estate market is seasonal, with stronger activity in spring and summer, though other factors have obscured this pattern in historical results.
This allowed the company to generate positive free cash flow in the current quarter despite lower revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, yielding positive free cash flow. The free cash flow margin, while positive, was lower than the previous quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow all decreased. Compared to the same quarter last year, revenue was lower, but cash flows turned from negative to positive.
Monitor the trend in free cash flow margin as it declined sequentially from a high level.