Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter, driven by a significant increase in operating cash flow. The margin also strengthened compared to both the preceding quarter and the same quarter one year ago.
- Revenue and operating cash flow were both higher than the previous quarter and the year-ago quarter. Capital expenditure rose slightly year over year but declined from the prior quarter, supporting a higher free cash flow and a stronger free cash flow margin.
- Compared to the previous quarter, free cash flow and margin moved from negative to positive territory. Versus the same quarter one year earlier, free cash flow and margin were both higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$737.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$891.0M
Cash generated by operations before capital spending.
CapEx
$153.7M
Capital spending and related asset purchases.
FCF margin
19.0%
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 | $3.5B | $450.7M | $142.0M | $308.7M | 8.8% |
| 2022-12-31 | $3.1B | $384.5M | $130.7M | $253.8M | 8.1% |
| 2023-03-31 | $2.8B | $3.4M | $181.4M | -$178.0M | -6.4% |
| 2023-06-30 | $3.9B | $891.0M | $153.7M | $737.3M | 19.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 215.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.6B | 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 strength
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, providing the primary support for free cash flow.
Higher operating cash flow drove free cash flow to a positive level and expanded the margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue and operating cash flow were both higher than the previous quarter and the year-ago quarter. Capital expenditure rose slightly year over year but declined from the prior quarter, supporting a higher free cash flow and a stronger free cash flow margin.
Compared to the previous quarter, free cash flow and margin moved from negative to positive territory. Versus the same quarter one year earlier, free cash flow and margin were both higher.
Monitor the level of capital expenditure, as it declined from the prior quarter while revenue rose, which contributed to the margin improvement.