Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and also rose from the same quarter last year, driven by a substantial increase in operating cash flow. Revenue was stable sequentially but higher year-over-year, while capital expenditure grew moderately.
- Operating cash flow rose significantly from both the prior quarter and the year-ago quarter, while capital expenditure increased moderately. This led to a higher free cash flow and an improved free cash flow margin compared to both periods.
- Compared to the prior quarter, free cash flow and free cash flow margin improved substantially, with operating cash flow rising while revenue remained stable. Versus the same quarter last year, free cash flow and margin also improved, supported by higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$108.4M
Capital spending and related asset purchases.
FCF margin
21.1%
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 | $4.2B | $457.4M | $83.6M | $373.8M | 8.8% |
| 2022-12-31 | $4.7B | $618.8M | $102.1M | $516.6M | 11.1% |
| 2023-03-31 | $5.1B | $718.8M | $86.9M | $631.9M | 12.5% |
| 2023-06-30 | $5.1B | $1.2B | $108.4M | $1.1B | 21.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 151.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.3B | 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 rose substantially from both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This improvement occurred even as revenue was stable sequentially.
The higher operating cash flow drove a notable improvement in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose significantly from both the prior quarter and the year-ago quarter, while capital expenditure increased moderately. This led to a higher free cash flow and an improved free cash flow margin compared to both periods.
Compared to the prior quarter, free cash flow and free cash flow margin improved substantially, with operating cash flow rising while revenue remained stable. Versus the same quarter last year, free cash flow and margin also improved, supported by higher revenue and operating cash flow.
Monitor the trend in capital expenditure, as it increased from both the prior quarter and the year-ago quarter.