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 sharply from the preceding quarter. Operating cash flow was lower than the prior quarter, while capital expenditure was slightly higher than both comparison periods.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the preceding quarter but higher than the year-ago quarter, resulting in a free cash flow margin that improved year over year but contracted sequentially.
- Compared to the preceding quarter, free cash flow and margin were substantially lower, driven by a lower operating cash flow. Versus the same quarter last year, free cash flow and margin were higher, with operating cash flow more than offsetting a slightly higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$961.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$95.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$130.0M
Cash generated by operations before capital spending.
CapEx
$35.0M
Capital spending and related asset purchases.
FCF margin
6.0%
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 |
|---|---|---|---|---|---|
| 2022-07-02 | $1.4B | $309.0M | $29.0M | $280.0M | 20.0% |
| 2022-09-30 | $1.5B | $273.0M | $33.0M | $240.0M | 15.9% |
| 2022-12-31 | $1.4B | $377.0M | $31.0M | $346.0M | 24.8% |
| 2023-04-01 | $1.6B | $130.0M | $35.0M | $95.0M | 6.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 31.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$17.1B | 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 Volatility
Operating cash flow was the strongest observable driver, rising year over year but falling sequentially. The sequential drop was the primary factor behind the free cash flow margin decline.
If operating cash flow continues at this lower level relative to revenue, free cash flow margin may remain under pressure in the near term.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the preceding quarter but higher than the year-ago quarter, resulting in a free cash flow margin that improved year over year but contracted sequentially.
Compared to the preceding quarter, free cash flow and margin were substantially lower, driven by a lower operating cash flow. Versus the same quarter last year, free cash flow and margin were higher, with operating cash flow more than offsetting a slightly higher capital expenditure.
Monitor the trajectory of operating cash flow, which declined notably from the prior quarter despite higher revenue.