Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin improved from the prior quarter but weakened relative to the same quarter last year. Operating cash flow held steady year over year, while higher capital expenditure reduced free cash flow.
- Revenue was stable quarter over quarter, while operating cash flow rose, driving free cash flow and margin higher. Year over year, revenue increased but higher capital expenditure absorbed more cash, resulting in a lower free cash flow margin.
- Compared to the prior quarter, free cash flow and margin improved. Compared to the same quarter a year ago, free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$908.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$221.2M
Capital spending and related asset purchases.
FCF margin
66.3%
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 | $1.3B | $941.7M | $156.0M | $785.6M | 59.7% |
| 2022-12-31 | $1.4B | $932.1M | $184.6M | $747.5M | 53.4% |
| 2023-03-31 | $1.4B | $828.7M | $166.1M | $662.6M | 49.1% |
| 2023-06-30 | $1.4B | $1.1B | $221.2M | $908.3M | 66.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 162.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 16.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$24.2B | 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 rose from the prior quarter, providing the primary support for the increase in free cash flow. This improvement occurred even as revenue was unchanged.
The stronger operating cash flow drove free cash flow and margin higher, offsetting the effect of elevated capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable quarter over quarter, while operating cash flow rose, driving free cash flow and margin higher. Year over year, revenue increased but higher capital expenditure absorbed more cash, resulting in a lower free cash flow margin.
Compared to the prior quarter, free cash flow and margin improved. Compared to the same quarter a year ago, free cash flow and margin were lower.
The higher capital expenditure compared to both prior and year-ago quarters is a concrete item to monitor in future periods.