Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the prior quarter and the same quarter last year, despite steady revenue. The cash conversion rate strengthened as operating cash flow increased notably relative to revenue.
- Revenue remained stable versus the prior quarter and the year-ago quarter, while operating cash flow rose substantially, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year ago, yet this did not offset the improvement in cash generation.
- Compared to the immediately preceding quarter, free cash flow increased as operating cash flow improved significantly and capital expenditure decreased slightly. Compared to the same quarter one year earlier, free cash flow also increased, driven by higher operating cash flow, though capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$791.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$365.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$400.4M
Cash generated by operations before capital spending.
CapEx
$34.6M
Capital spending and related asset purchases.
FCF margin
22.6%
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 | $1.5B | -$170.4M | $27.3M | -$197.7M | -13.1% |
| 2022-12-31 | $2.0B | $632.8M | $81.5M | $551.3M | 27.2% |
| 2023-04-01 | $1.5B | $112.4M | $40.8M | $71.6M | 4.7% |
| 2023-07-01 | $1.6B | $400.4M | $34.6M | $365.8M | 22.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 163.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$909.7M | 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
The most observable driver was the increase in operating cash flow, which rose compared to both the prior quarter and the year-ago quarter, even as revenue was largely unchanged. This directly boosted free cash flow and the free cash flow margin.
Higher operating cash flow was the primary factor behind the improved free cash flow performance this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue remained stable versus the prior quarter and the year-ago quarter, while operating cash flow rose substantially, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year ago, yet this did not offset the improvement in cash generation.
Compared to the immediately preceding quarter, free cash flow increased as operating cash flow improved significantly and capital expenditure decreased slightly. Compared to the same quarter one year earlier, free cash flow also increased, driven by higher operating cash flow, though capital expenditure was higher.
Monitor whether operating cash flow can sustain its relative strength against revenue in subsequent periods.