Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved substantially from the prior quarter, lifting free cash flow and margin. Compared to the same quarter last year, both revenue and cash generation were higher.
- Revenue increased while operating cash flow grew faster, resulting in a higher free cash flow margin. Capital expenditure remained stable relative to revenue, supporting the conversion.
- Compared to the prior quarter, operating cash flow and free cash flow were higher, and free cash flow margin improved. Versus the same quarter last year, all metrics including revenue were higher, with operating cash flow showing the largest relative increase.
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
$370.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$406.0M
Cash generated by operations before capital spending.
CapEx
$36.0M
Capital spending and related asset purchases.
FCF margin
21.2%
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 | $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% |
| 2023-07-01 | $1.7B | $406.0M | $36.0M | $370.0M | 21.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$16.3B | 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, driving the improvement in free cash flow and margin.
This was the strongest observable driver of improved free cash flow for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow grew faster, resulting in a higher free cash flow margin. Capital expenditure remained stable relative to revenue, supporting the conversion.
Compared to the prior quarter, operating cash flow and free cash flow were higher, and free cash flow margin improved. Versus the same quarter last year, all metrics including revenue were higher, with operating cash flow showing the largest relative increase.
Monitor the level of capital expenditure relative to revenue, as it remained steady despite revenue growth.