Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than the prior quarter but lower than the same quarter last year. Free cash flow and free cash flow margin weakened compared to both the prior quarter and the year-ago quarter.
- Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was higher than the prior quarter but slightly lower than the year-ago quarter. The resulting free cash flow and free cash flow margin declined sequentially and year-over-year.
- Compared to the prior quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$594.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$113.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$139.2M
Cash generated by operations before capital spending.
CapEx
$26.1M
Capital spending and related asset purchases.
FCF margin
15.2%
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 |
|---|---|---|---|---|---|
| 2022-04-03 | $963.2M | $283.2M | $27.0M | $256.2M | 26.6% |
| 2022-07-03 | $895.6M | $97.5M | $19.5M | $78.0M | 8.7% |
| 2022-10-02 | $711.8M | $160.0M | $13.0M | $146.9M | 20.6% |
| 2023-01-01 | $741.2M | $139.2M | $26.1M | $113.0M | 15.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.9B | 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 Weakening
Operating cash flow was lower than both the prior quarter and the year-ago quarter, even though revenue was higher than the prior quarter. This drove the decline in free cash flow and free cash flow margin.
The lower operating cash flow was the strongest observable driver of the weakened cash conversion this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than both the prior quarter and the year-ago quarter, while capital expenditure was higher than the prior quarter but slightly lower than the year-ago quarter. The resulting free cash flow and free cash flow margin declined sequentially and year-over-year.
Compared to the prior quarter, revenue improved but operating cash flow, free cash flow, and free cash flow margin all weakened. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trajectory of operating cash flow relative to revenue, as it declined despite higher revenue compared to the prior quarter.