Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow turned positive from negative in both comparison periods, with a corresponding improvement in free cash flow margin.
- Operating cash flow rose relative to the prior quarter, while capital expenditure also increased. The resulting free cash flow was positive, yielding a low but positive free cash flow margin.
- Compared to the immediately preceding quarter, revenue was higher and free cash flow improved from negative to positive. Versus the same quarter one year earlier, revenue was higher and free cash flow also turned positive from negative.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$710.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$22.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$127.4M
Cash generated by operations before capital spending.
CapEx
$105.3M
Capital spending and related asset purchases.
FCF margin
0.4%
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 | $4.5B | $343.4M | $106.0M | $237.4M | 5.3% |
| 2022-12-31 | $4.4B | $583.1M | $90.2M | $493.0M | 11.2% |
| 2023-03-31 | $4.4B | $38.4M | $80.3M | -$41.9M | -0.9% |
| 2023-06-30 | $5.0B | $127.4M | $105.3M | $22.1M | 0.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 13.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Revenue Growth Supporting Cash Generation
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased sequentially, contributing to the positive free cash flow.
Higher revenue provided a stronger base for operating cash flow, enabling the company to achieve positive free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to the prior quarter, while capital expenditure also increased. The resulting free cash flow was positive, yielding a low but positive free cash flow margin.
Compared to the immediately preceding quarter, revenue was higher and free cash flow improved from negative to positive. Versus the same quarter one year earlier, revenue was higher and free cash flow also turned positive from negative.
Monitor the level of capital expenditure relative to operating cash flow, as it consumed a significant portion of operating cash flow in the current quarter.