Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially, but free cash flow and margin improved modestly as capital expenditure declined. Compared to the same quarter a year earlier, all key metrics were lower, indicating a weakened performance.
- Revenue remained unchanged from the prior quarter, while operating cash flow decreased. However, a larger reduction in capital expenditure resulted in a slight increase in free cash flow and an improvement in the free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin improved modestly, driven by lower capital spending, while operating cash flow weakened. Compared to the same quarter one year earlier, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were lower, reflecting a significant decline.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$566.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$174.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$228.0M
Cash generated by operations before capital spending.
CapEx
$54.0M
Capital spending and related asset purchases.
FCF margin
9.4%
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 |
|---|---|---|---|---|---|
| 2022-07-01 | $2.6B | $180.0M | $72.0M | $108.0M | 4.1% |
| 2022-09-30 | $2.0B | $245.0M | $133.0M | $112.0M | 5.5% |
| 2022-12-30 | $1.9B | $251.0M | $79.0M | $172.0M | 9.1% |
| 2023-03-31 | $1.9B | $228.0M | $54.0M | $174.0M | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -40.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$198.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Lower capital expenditure
Capital expenditure decreased from the prior quarter, which allowed free cash flow to rise despite lower operating cash flow. This reduction in spending directly supported the sequential improvement in free cash flow margin.
The lower capital expenditure was the primary factor enabling the sequential improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained unchanged from the prior quarter, while operating cash flow decreased. However, a larger reduction in capital expenditure resulted in a slight increase in free cash flow and an improvement in the free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin improved modestly, driven by lower capital spending, while operating cash flow weakened. Compared to the same quarter one year earlier, all key metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were lower, reflecting a significant decline.
Monitor the trajectory of operating cash flow, which declined sequentially despite stable revenue.