Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position a year ago, with a significantly higher margin.
- Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin improved substantially compared to both the prior quarter and the same quarter last year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while capital expenditure was lower, leading to a much improved free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$720.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.3B
Cash generated by operations before capital spending.
CapEx
$252.0M
Capital spending and related asset purchases.
FCF margin
36.7%
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 | $2.2B | $478.6M | $954.7M | -$476.0M | -21.8% |
| 2022-09-30 | $3.0B | -$44.5M | $225.5M | -$270.1M | -9.0% |
| 2022-12-31 | $2.6B | $575.7M | $166.7M | $409.0M | 15.7% |
| 2023-03-31 | $2.9B | $1.3B | $252.0M | $1.1B | 36.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -2204.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.7% | 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.
Operating Cash Flow Improvement
Operating cash flow was higher than both the prior quarter and the same quarter last year, while capital expenditure remained lower than operating cash flow. This combination drove the positive free cash flow and margin improvement.
The stronger operating cash flow relative to capital expenditure was the primary observable factor behind the improved free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than capital expenditure, resulting in positive free cash flow. The free cash flow margin improved substantially compared to both the prior quarter and the same quarter last year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, while capital expenditure was lower, leading to a much improved free cash flow.
Monitor the level of capital expenditure relative to operating cash flow, as it directly affects free cash flow generation.