Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved versus both the prior quarter and the year-ago quarter, with operating cash flow rising while revenue showed a slight sequential decline. Free cash flow margin expanded, reflecting a stronger conversion of revenue into cash.
- Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially on both comparisons, while capital expenditure rose modestly. Free cash flow improved significantly, and the free cash flow margin widened, indicating a more efficient cash conversion from revenue.
- Compared with the immediately preceding quarter, operating cash flow and free cash flow were higher, while revenue was slightly lower. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin showing notable improvement from year-ago levels.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$738.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$769.0M
Cash generated by operations before capital spending.
CapEx
$31.0M
Capital spending and related asset purchases.
FCF margin
23.8%
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 | $2.9B | $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% |
| 2023-06-30 | $3.1B | $769.0M | $31.0M | $738.0M | 23.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$9.9B | 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 Growth
Operating cash flow increased substantially versus both the prior quarter and the year-ago quarter, driving the improvement in free cash flow and margin.
Higher operating cash flow was the strongest observable driver of the quarter's cash conversion improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the prior quarter but higher than a year ago. Operating cash flow increased substantially on both comparisons, while capital expenditure rose modestly. Free cash flow improved significantly, and the free cash flow margin widened, indicating a more efficient cash conversion from revenue.
Compared with the immediately preceding quarter, operating cash flow and free cash flow were higher, while revenue was slightly lower. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin showing notable improvement from year-ago levels.
Monitor the trend in operating cash flow relative to revenue, as the current period's cash conversion improved despite a slight dip in revenue.