Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow was positive this quarter, compared to negative in the same quarter last year. Revenue and operating cash flow were higher than both the prior quarter and the year-ago quarter.
- Revenue increased compared to the prior quarter and the year-ago quarter. Operating cash flow was higher than capital expenditure, resulting in a positive free cash flow margin. The free cash flow margin was lower than the prior quarter but improved from negative a year ago.
- Compared to the prior quarter, revenue and free cash flow were higher, while the free cash flow margin was lower. Compared to the same quarter last year, all metrics improved: revenue was higher, operating cash flow turned positive, capital expenditure was lower, and free cash flow turned positive with a positive margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$717.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$739.2M
Cash generated by operations before capital spending.
CapEx
$21.3M
Capital spending and related asset purchases.
FCF margin
17.1%
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 | $3.9B | -$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% |
| 2023-06-30 | $4.2B | $739.2M | $21.3M | $717.9M | 17.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.7% | 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.
Operating cash flow strength
Operating cash flow was higher than the prior quarter and turned positive from negative a year ago, driving free cash flow generation.
The company generated positive free cash flow, strengthening its cash position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared to the prior quarter and the year-ago quarter. Operating cash flow was higher than capital expenditure, resulting in a positive free cash flow margin. The free cash flow margin was lower than the prior quarter but improved from negative a year ago.
Compared to the prior quarter, revenue and free cash flow were higher, while the free cash flow margin was lower. Compared to the same quarter last year, all metrics improved: revenue was higher, operating cash flow turned positive, capital expenditure was lower, and free cash flow turned positive with a positive margin.
Monitor the company's debt-to-capitalization ratio and its access to credit facilities, as noted in the liquidity discussion.