Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow declined versus the prior quarter while free cash flow margin improved modestly. Compared to the same quarter last year, operating cash flow and free cash flow rose despite lower revenue.
- Operating cash flow captured a lower portion of revenue relative to the preceding quarter, resulting in a smaller absolute free cash flow. However, capital expenditure was reduced, leading to a higher free cash flow margin than the prior quarter.
- Revenue and operating cash flow were lower than the prior quarter, but free cash flow margin improved from that period. Compared to the year-ago quarter, operating cash flow and free cash flow were higher while revenue was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$626.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$168.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$218.0M
Cash generated by operations before capital spending.
CapEx
$50.0M
Capital spending and related asset purchases.
FCF margin
10.5%
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 | $2.0B | $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% |
| 2023-06-30 | $1.6B | $218.0M | $50.0M | $168.0M | 10.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -182.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Improvement
Free cash flow margin rose from the prior quarter despite lower revenue, supported by reduced capital expenditure relative to the year-ago period. Operating cash flow was higher on a year-over-year basis.
The higher free cash flow margin and increased year-over-year operating cash flow strengthen cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow captured a lower portion of revenue relative to the preceding quarter, resulting in a smaller absolute free cash flow. However, capital expenditure was reduced, leading to a higher free cash flow margin than the prior quarter.
Revenue and operating cash flow were lower than the prior quarter, but free cash flow margin improved from that period. Compared to the year-ago quarter, operating cash flow and free cash flow were higher while revenue was lower.
Monitor the trajectory of operating cash flow as it declined sequentially while revenue also decreased.