Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved as capital expenditure declined relative to the preceding quarter.
- Operating cash flow rose while capital expenditure fell, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved, with free cash flow margin showing the largest relative gain.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$395.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$144.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$215.8M
Cash generated by operations before capital spending.
CapEx
$71.4M
Capital spending and related asset purchases.
FCF margin
11.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.1B | $231.7M | $115.9M | $115.8M | 11.0% |
| 2022-09-30 | $1.3B | $103.8M | $82.8M | $21.1M | 1.6% |
| 2022-12-31 | $1.2B | $205.6M | $91.8M | $113.8M | 9.4% |
| 2023-03-31 | $1.3B | $215.8M | $71.4M | $144.3M | 11.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 77.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.8B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger Cash Conversion
The quarter's free cash flow margin increased sequentially and year-over-year, supported by higher operating cash flow and lower capital spending.
This improvement in cash conversion strengthened the company's liquidity position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure fell, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved, with free cash flow margin showing the largest relative gain.
Capital expenditure levels, which decreased from both the prior quarter and the year-ago period, should be monitored for sustainability.