Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved sharply versus both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue increased while capital expenditure declined compared to the year-ago period.
- Operating cash flow as a share of revenue was higher than in both the preceding quarter and the same quarter one year earlier, supporting a stronger free cash flow margin. Capital expenditure was lower than the year-ago level but slightly higher than the prior quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, all metrics also improved, with operating cash flow and free cash flow showing a larger relative increase than revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$421.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$253.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$282.6M
Cash generated by operations before capital spending.
CapEx
$28.8M
Capital spending and related asset purchases.
FCF margin
22.7%
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 | $914.7M | $79.5M | $28.6M | $50.8M | 5.6% |
| 2022-09-30 | $950.3M | $44.7M | $29.1M | $15.6M | 1.6% |
| 2022-12-31 | $1.0B | $128.6M | $27.4M | $101.3M | 9.8% |
| 2023-03-31 | $1.1B | $282.6M | $28.8M | $253.7M | 22.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 109.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 Strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, while revenue also increased. This combination drove a significant improvement in free cash flow and free cash flow margin.
The higher operating cash flow was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue was higher than in both the preceding quarter and the same quarter one year earlier, supporting a stronger free cash flow margin. Capital expenditure was lower than the year-ago level but slightly higher than the prior quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all improved. Versus the same quarter one year earlier, all metrics also improved, with operating cash flow and free cash flow showing a larger relative increase than revenue.
Monitor the trend in capital expenditure relative to operating cash flow, as it was lower year-over-year but slightly higher sequentially.