Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow turned positive from the prior quarter, driving free cash flow to a positive figure. Revenue was stable sequentially but lower than the same quarter last year, while free cash flow margin improved sharply from the prior quarter but remained below the year-ago level.
- Revenue was unchanged from the prior quarter, yet operating cash flow swung from negative to positive, resulting in a positive free cash flow and a free cash flow margin that turned from negative to positive. Capital expenditure was nearly flat sequentially.
- Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and free cash flow margin strengthened. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$451.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$511.7M
Cash generated by operations before capital spending.
CapEx
$60.7M
Capital spending and related asset purchases.
FCF margin
29.3%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.5B | $623.6M | $67.9M | $555.7M | 36.7% |
| 2022-09-30 | $1.6B | $767.6M | $54.4M | $713.2M | 44.9% |
| 2022-12-31 | $1.5B | -$135.2M | $60.4M | -$195.6M | -12.8% |
| 2023-03-31 | $1.5B | $511.7M | $60.7M | $451.0M | 29.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Recovery
Operating cash flow rebounded to a positive figure from a negative level in the prior quarter, which was the primary factor behind the swing in free cash flow. Revenue remained stable, so the improvement was driven by cash flow rather than top-line growth.
This recovery reversed the prior quarter's negative free cash flow and restored a positive free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the prior quarter, yet operating cash flow swung from negative to positive, resulting in a positive free cash flow and a free cash flow margin that turned from negative to positive. Capital expenditure was nearly flat sequentially.
Compared to the prior quarter, operating cash flow and free cash flow both improved from negative to positive, and free cash flow margin strengthened. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor whether operating cash flow can sustain its positive level given the sequential volatility.