Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than the prior quarter and the year-ago quarter. Free cash flow margin improved compared to the year-ago quarter but weakened sequentially.
- Revenue increased while operating cash flow as a share of revenue was lower than the immediate prior quarter but higher than the year-ago quarter, resulting in a free cash flow margin that improved year over year but declined sequentially.
- Compared with the prior quarter, operating cash flow and free cash flow were lower despite higher revenue, leading to a weakened margin. Versus the year-ago quarter, all metrics were higher and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$2.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$566.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$594.0M
Cash generated by operations before capital spending.
CapEx
$28.0M
Capital spending and related asset purchases.
FCF margin
17.9%
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 | $3.0B | $454.0M | $24.0M | $430.0M | 14.4% |
| 2022-09-30 | $2.9B | $814.0M | $21.0M | $793.0M | 27.7% |
| 2022-12-31 | $2.9B | $1.1B | $28.0M | $1.1B | 36.9% |
| 2023-03-31 | $3.2B | $594.0M | $28.0M | $566.0M | 17.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 71.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$10.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Cash Flow Strength
Operating cash flow and free cash flow were substantially higher than the same quarter one year earlier, alongside a higher free cash flow margin.
The strongest observable driver was the year-over-year increase in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow as a share of revenue was lower than the immediate prior quarter but higher than the year-ago quarter, resulting in a free cash flow margin that improved year over year but declined sequentially.
Compared with the prior quarter, operating cash flow and free cash flow were lower despite higher revenue, leading to a weakened margin. Versus the year-ago quarter, all metrics were higher and the margin improved.
Monitor whether operating cash flow continues to trail revenue growth, as seen in the sequential comparison.