Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from the prior quarter but increased substantially from the same quarter last year. The free cash flow margin improved both sequentially and year over year.
- Revenue was lower than the previous quarter but higher than a year ago. Operating cash flow followed a similar pattern, while capital expenditure remained relatively stable. As a result, free cash flow margin improved, indicating a higher conversion of revenue into free cash flow.
- Compared to the prior quarter, free cash flow was lower due to a decrease in revenue and operating cash flow, though capital expenditure was slightly lower. Compared to the same quarter last year, free cash flow was significantly higher, driven by a large increase in operating cash flow and a reduction in capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$687.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$711.4M
Cash generated by operations before capital spending.
CapEx
$23.7M
Capital spending and related asset purchases.
FCF margin
19.2%
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 | $3.9B | -$105.3M | $31.9M | -$137.2M | -3.5% |
| 2022-09-30 | $3.9B | -$406.3M | $26.0M | -$432.3M | -11.1% |
| 2022-12-31 | $5.1B | $972.4M | $24.1M | $948.3M | 18.7% |
| 2023-03-31 | $3.6B | $711.4M | $23.7M | $687.6M | 19.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 129.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Free Cash Flow Margin Expansion
The free cash flow margin improved sequentially and year over year, as operating cash flow grew faster than revenue compared to the prior year and capital expenditure remained contained.
This supports the company's liquidity position and reduces reliance on external financing.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the previous quarter but higher than a year ago. Operating cash flow followed a similar pattern, while capital expenditure remained relatively stable. As a result, free cash flow margin improved, indicating a higher conversion of revenue into free cash flow.
Compared to the prior quarter, free cash flow was lower due to a decrease in revenue and operating cash flow, though capital expenditure was slightly lower. Compared to the same quarter last year, free cash flow was significantly higher, driven by a large increase in operating cash flow and a reduction in capital expenditure.
Monitor the company's cash management strategy in response to recent banking system volatility, as disclosed in the filing.