Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned strongly positive from a negative prior quarter, driving a substantial free cash flow margin. Revenue was stable versus a year ago, while cash generation improved markedly.
- Revenue was stable sequentially and year-over-year, but operating cash flow shifted from negative to positive, resulting in a free cash flow margin that was higher than both the prior quarter and the same quarter last year. Capital expenditure was lower than a year ago, further supporting free cash flow.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow improved from negative to positive, and the free cash flow margin turned positive. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher, while revenue was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$446.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$426.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$445.1M
Cash generated by operations before capital spending.
CapEx
$18.8M
Capital spending and related asset purchases.
FCF margin
39.4%
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 | $1.1B | $95.2M | $23.1M | $72.1M | 6.8% |
| 2022-12-31 | $1.0B | $92.8M | $22.0M | $70.8M | 7.1% |
| 2023-03-31 | $1.0B | -$106.6M | $16.6M | -$123.2M | -12.0% |
| 2023-06-30 | $1.1B | $445.1M | $18.8M | $426.3M | 39.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 278.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.0B | 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 Reversal
Operating cash flow shifted from negative in the prior quarter to positive in the current quarter, and was higher than the same quarter last year. This was the strongest observable driver of the free cash flow improvement.
The reversal in operating cash flow directly enabled a positive free cash flow margin, compared to a negative margin in the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and year-over-year, but operating cash flow shifted from negative to positive, resulting in a free cash flow margin that was higher than both the prior quarter and the same quarter last year. Capital expenditure was lower than a year ago, further supporting free cash flow.
Compared to the immediately preceding quarter, operating cash flow and free cash flow improved from negative to positive, and the free cash flow margin turned positive. Versus the same quarter one year earlier, operating cash flow, free cash flow, and free cash flow margin were all higher, while revenue was stable.
Monitor whether the seasonal cash generation pattern continues into the next quarter, as the filing notes seasonal cash usage in the first quarter and a reversal in the second quarter.