Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, free cash flow and its margin improved compared to the prior quarter but weakened relative to the same quarter last year. The increase in operating cash flow drove the sequential improvement, while a higher capital expenditure and lower operating cash flow compared to last year contributed to the year-over-year decline.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow improved sequentially but declined year over year, and capital expenditure increased in both comparisons. The result was a free cash flow margin that was higher than the prior quarter but lower than the same quarter last year.
- Compared to the prior quarter, free cash flow and margin improved as operating cash flow growth more than offset the increase in capital expenditure. Compared to the same quarter last year, free cash flow and margin weakened because operating cash flow was lower and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$796.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$240.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$281.7M
Cash generated by operations before capital spending.
CapEx
$41.6M
Capital spending and related asset purchases.
FCF margin
10.7%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $2.1B | $399.4M | $40.8M | $358.6M | 16.9% |
| 2022-12-31 | $2.0B | $66.3M | $24.2M | $42.1M | 2.1% |
| 2023-03-31 | $2.3B | $187.1M | $31.5M | $155.6M | 6.8% |
| 2023-06-30 | $2.2B | $281.7M | $41.6M | $240.1M | 10.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.0B | 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 Variation
The strongest observable driver was the change in operating cash flow, which improved sharply from the prior quarter but dropped compared to the same quarter last year. This shift directly determined the direction of free cash flow.
Free cash flow margin was pulled higher sequentially but pulled lower year over year by operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow improved sequentially but declined year over year, and capital expenditure increased in both comparisons. The result was a free cash flow margin that was higher than the prior quarter but lower than the same quarter last year.
Compared to the prior quarter, free cash flow and margin improved as operating cash flow growth more than offset the increase in capital expenditure. Compared to the same quarter last year, free cash flow and margin weakened because operating cash flow was lower and capital expenditure was higher.
Capital expenditure has risen in both sequential and year-over-year comparisons; its impact on free cash flow should be monitored.