Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Operating cash flow improved significantly, driving a positive free cash flow margin versus negative margins in both comparison periods.
- With revenue unchanged, a higher operating cash flow relative to the prior quarter and the year-ago quarter resulted in a positive free cash flow margin, supported by lower capital expenditure compared to the prior quarter.
- Compared to the immediately preceding quarter, operating cash flow was higher and capital expenditure was lower, turning free cash flow from negative to positive. Versus the same quarter one year earlier, operating cash flow was also higher, while capital expenditure was nearly stable, resulting in a much higher free cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$418.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$231.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$270.7M
Cash generated by operations before capital spending.
CapEx
$39.6M
Capital spending and related asset purchases.
FCF margin
15.4%
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 |
|---|---|---|---|---|---|
| 2022-10-01 | $1.6B | -$43.4M | $44.5M | -$87.9M | -5.6% |
| 2022-12-31 | $1.8B | $395.1M | $72.0M | $323.1M | 17.6% |
| 2023-04-01 | $1.5B | $14.0M | $61.6M | -$47.6M | -3.1% |
| 2023-07-01 | $1.5B | $270.7M | $39.6M | $231.1M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 174.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 Improvement
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, while revenue remained stable. This was the primary factor behind the positive free cash flow margin.
The improvement in operating cash flow converted stable revenue into positive free cash flow, reversing the negative margins seen in both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
With revenue unchanged, a higher operating cash flow relative to the prior quarter and the year-ago quarter resulted in a positive free cash flow margin, supported by lower capital expenditure compared to the prior quarter.
Compared to the immediately preceding quarter, operating cash flow was higher and capital expenditure was lower, turning free cash flow from negative to positive. Versus the same quarter one year earlier, operating cash flow was also higher, while capital expenditure was nearly stable, resulting in a much higher free cash flow.
Monitor whether operating cash flow can sustain its current level relative to revenue in future quarters.