Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Free cash flow improved significantly year over year but decreased from the preceding quarter.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased both sequentially and year over year, resulting in a free cash flow margin that weakened from the prior quarter but improved versus the same period last year.
- Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were lower, leading to a weaker free cash flow margin. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$4.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$909.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.0B
Cash generated by operations before capital spending.
CapEx
$113.0M
Capital spending and related asset purchases.
FCF margin
28.8%
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 | $2.9B | $628.9M | $142.5M | $486.4M | 16.6% |
| 2022-12-31 | $3.4B | $1.7B | $152.2M | $1.6B | 45.9% |
| 2023-03-31 | $3.2B | $1.4B | $178.2M | $1.2B | 37.6% |
| 2023-06-30 | $3.2B | $1.0B | $113.0M | $909.4M | 28.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 93.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 Volatility
Operating cash flow showed a notable year-over-year increase, the largest driver of free cash flow improvement, but fell sequentially despite steady revenue. This pattern suggests timing factors or other non-revenue influences.
If operating cash flow continues to decline from the prior quarter level, free cash flow may weaken further even if revenue remains stable.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure decreased both sequentially and year over year, resulting in a free cash flow margin that weakened from the prior quarter but improved versus the same period last year.
Compared to the prior quarter, revenue was stable while operating cash flow and free cash flow were lower, leading to a weaker free cash flow margin. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher.
Monitor quarterly operating cash flow trends, as the sequential decline contrasts with stable revenue.