Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved compared to the same quarter last year but weakened sequentially. Operating cash flow was lower than the prior quarter yet higher than the year-ago period, while capital expenditure declined on both comparisons.
- Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow as a proportion of revenue was higher than the year-ago quarter but lower than the prior quarter, resulting in a free cash flow margin that improved year over year but weakened sequentially.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$366.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$411.7M
Cash generated by operations before capital spending.
CapEx
$45.4M
Capital spending and related asset purchases.
FCF margin
31.8%
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 |
|---|---|---|---|---|---|
| 2022-07-01 | $1.2B | $213.8M | $125.2M | $88.6M | 7.2% |
| 2022-09-30 | $1.4B | $236.3M | $141.7M | $94.6M | 6.7% |
| 2022-12-30 | $1.3B | $773.4M | $63.5M | $709.9M | 53.4% |
| 2023-03-31 | $1.2B | $411.7M | $45.4M | $366.3M | 31.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 157.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$658.5M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Capital expenditure reduction
Capital expenditure was lower than both the prior quarter and the year-ago quarter. This reduction supported free cash flow despite lower revenue and operating cash flow compared to the prior quarter.
Lower capital expenditure contributed to a free cash flow margin that improved year over year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the prior quarter and the year-ago quarter. Operating cash flow as a proportion of revenue was higher than the year-ago quarter but lower than the prior quarter, resulting in a free cash flow margin that improved year over year but weakened sequentially.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue was lower, operating cash flow and free cash flow were higher, capital expenditure was lower, and free cash flow margin improved.
Monitor the trajectory of operating cash flow given its sequential decline from the prior quarter.