Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow turned positive, driven by a shift in operating cash flow from negative to positive. Revenue was lower than the year-ago quarter but higher than the prior quarter, while the free cash flow margin improved.
- Revenue and operating cash flow both increased compared to the prior quarter, while capital expenditure was nearly unchanged. The positive free cash flow and margin contrast with negative figures in both the prior quarter and the year-ago period.
- Compared to the prior quarter, revenue was higher, operating cash flow improved from negative to positive, and free cash flow turned positive. Versus the year-ago quarter, revenue was lower but operating cash flow and free cash flow both improved from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$177.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$196.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$264.4M
Cash generated by operations before capital spending.
CapEx
$68.3M
Capital spending and related asset purchases.
FCF margin
4.7%
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 |
|---|---|---|---|---|---|
| 2022-10-01 | $4.1B | -$425.6M | $114.4M | -$540.0M | -13.1% |
| 2022-12-31 | $4.0B | $651.1M | $130.5M | $520.6M | 13.1% |
| 2023-04-01 | $3.9B | -$286.3M | $68.2M | -$354.5M | -9.0% |
| 2023-07-01 | $4.2B | $264.4M | $68.3M | $196.1M | 4.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 110.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.7B | 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 Turnaround
Operating cash flow turned positive this quarter, a clear improvement from the negative figures in both the prior quarter and the year-ago period. This shift directly enabled the quarter's positive free cash flow.
The positive operating cash flow provided the primary support for the quarter's free cash flow generation and margin improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow both increased compared to the prior quarter, while capital expenditure was nearly unchanged. The positive free cash flow and margin contrast with negative figures in both the prior quarter and the year-ago period.
Compared to the prior quarter, revenue was higher, operating cash flow improved from negative to positive, and free cash flow turned positive. Versus the year-ago quarter, revenue was lower but operating cash flow and free cash flow both improved from negative to positive.
Monitor the company's near-term capital allocation priorities, specifically the balance between debt reduction and internal investments, as stated in the filing.