Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter and was higher than the year-ago quarter.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than both periods. This resulted in a free cash flow margin that improved from negative to positive sequentially and was higher year over year.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was 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
$467.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$524.0M
Cash generated by operations before capital spending.
CapEx
$56.9M
Capital spending and related asset purchases.
FCF margin
9.9%
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 | $4.4B | $510.2M | $58.9M | $451.3M | 10.3% |
| 2022-12-31 | $4.1B | $760.3M | $89.0M | $671.3M | 16.5% |
| 2023-03-31 | $3.7B | $8.5M | $77.1M | -$68.6M | -1.9% |
| 2023-06-30 | $4.7B | $524.0M | $56.9M | $467.1M | 9.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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 Improvement
Operating cash flow was substantially higher than the prior quarter and also higher than the year-ago quarter. This was the strongest observable driver of free cash flow, as capital expenditure was lower in both comparisons.
The improvement in operating cash flow was the primary factor behind the positive free cash flow and the higher free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, while capital expenditure was lower than both periods. This resulted in a free cash flow margin that improved from negative to positive sequentially and was higher year over year.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and capital expenditure was lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was lower.
Monitor whether operating cash flow can sustain its improved level relative to revenue in future quarters.