Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved from the prior quarter but weakened compared to the same quarter last year. The cash conversion margin strengthened sequentially yet remained below the year-ago level.
- Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sequentially but declined year over year, while capital expenditure was higher in both comparisons. The resulting free cash flow and free cash flow margin improved from the prior quarter but were lower than the same quarter one year earlier.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all increased. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$949.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$213.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$296.0M
Cash generated by operations before capital spending.
CapEx
$83.0M
Capital spending and related asset purchases.
FCF margin
6.2%
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 |
|---|---|---|---|---|---|
| 2022-10-01 | $3.1B | $348.0M | $78.0M | $270.0M | 8.8% |
| 2022-12-31 | $3.6B | $527.0M | $162.0M | $365.0M | 10.0% |
| 2023-04-01 | $3.0B | $163.0M | $62.0M | $101.0M | 3.3% |
| 2023-07-01 | $3.4B | $296.0M | $83.0M | $213.0M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 81.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.4% | 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.
Sequential Revenue and Cash Flow Growth
Revenue increased from the prior quarter, and operating cash flow rose at a faster pace, driving a higher free cash flow margin. This sequential improvement was the strongest observable driver in the quarter.
The sequential improvement in free cash flow margin indicates stronger cash conversion efficiency compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the prior quarter and the year-ago quarter. Operating cash flow rose sequentially but declined year over year, while capital expenditure was higher in both comparisons. The resulting free cash flow and free cash flow margin improved from the prior quarter but were lower than the same quarter one year earlier.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin all increased. Compared to the same quarter one year earlier, revenue was higher, but operating cash flow, free cash flow, and free cash flow margin were lower.
Monitor the trajectory of operating cash flow relative to revenue, as it declined year over year despite higher revenue.