Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both rose compared to the prior quarter and the same quarter last year. Free cash flow margin improved, reflecting stronger cash conversion.
- Revenue growth supported higher operating cash flow. With capital expenditure only slightly higher, free cash flow and its margin improved notably.
- Compared to the prior quarter, all metrics were higher with a stronger margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were higher, and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$409.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$446.0M
Cash generated by operations before capital spending.
CapEx
$37.0M
Capital spending and related asset purchases.
FCF margin
11.0%
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 | $3.3B | $239.0M | $24.0M | $215.0M | 6.4% |
| 2022-12-31 | $3.4B | $464.0M | $34.0M | $430.0M | 12.5% |
| 2023-03-31 | $3.3B | $278.0M | $25.0M | $253.0M | 7.6% |
| 2023-06-30 | $3.7B | $446.0M | $37.0M | $409.0M | 11.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 108.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.4B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strong Operating Cash Flow
Operating cash flow increased more than proportionally relative to revenue, driving free cash flow growth.
The improved cash generation provided a solid base for free cash flow and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue growth supported higher operating cash flow. With capital expenditure only slightly higher, free cash flow and its margin improved notably.
Compared to the prior quarter, all metrics were higher with a stronger margin. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were higher, and the margin improved.
Monitor the trend in capital expenditure relative to operating cash flow, as capital spending increased slightly while cash generation strengthened.