Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow both improved sharply versus the prior quarter and the year-ago quarter. The free cash flow margin turned positive after a negative prior quarter and was higher than the same quarter last year.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased substantially relative to revenue, leading to a higher free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved from negative to positive. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were also higher, and free cash flow margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.8B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.0B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.2B
Cash generated by operations before capital spending.
CapEx
$206.1M
Capital spending and related asset purchases.
FCF margin
16.0%
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 | $6.0B | $639.2M | $174.9M | $464.3M | 7.7% |
| 2022-12-31 | $5.2B | $641.0M | $233.8M | $407.2M | 7.8% |
| 2023-03-31 | $5.4B | $88.2M | $209.9M | -$121.7M | -2.2% |
| 2023-06-30 | $6.2B | $1.2B | $206.1M | $1.0B | 16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 126.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.4B | 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, driving a significant improvement in free cash flow and margin.
The increase in operating cash flow was the strongest observable factor behind 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.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow increased substantially relative to revenue, leading to a higher free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved from negative to positive. Versus the same quarter one year earlier, revenue, operating cash flow, and free cash flow were also higher, and free cash flow margin was higher.
Capital expenditure was higher than both the prior quarter and the year-ago quarter, which may affect future free cash flow if it continues to increase.