Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved significantly versus the prior quarter and the year-ago quarter. The free cash flow margin turned positive from negative a year earlier.
- Revenue increased while operating cash flow rose at a faster pace, leading to a higher free cash flow margin. Capital expenditure was slightly lower than the prior quarter, further supporting free cash flow conversion.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving from near zero. Versus the same quarter last year, all metrics strengthened, and free cash flow turned from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$73.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.8B
Cash generated by operations before capital spending.
CapEx
$739.0M
Capital spending and related asset purchases.
FCF margin
29.2%
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 | $2.1B | -$116.0M | $605.0M | -$721.0M | -34.7% |
| 2022-09-30 | $2.3B | $345.0M | $797.0M | -$452.0M | -19.9% |
| 2022-12-31 | $3.1B | $802.0M | $800.0M | $2.0M | 0.1% |
| 2023-03-31 | $3.8B | $1.8B | $739.0M | $1.1B | 29.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 85.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 19.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.8B | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the strongest observable driver of the free cash flow improvement.
The increase in operating cash flow directly lifted free cash flow and the free cash flow margin to positive territory.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose at a faster pace, leading to a higher free cash flow margin. Capital expenditure was slightly lower than the prior quarter, further supporting free cash flow conversion.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, with free cash flow margin improving from near zero. Versus the same quarter last year, all metrics strengthened, and free cash flow turned from negative to positive.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in subsequent quarters.