Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company reported positive free cash flow and a positive margin for the quarter, compared to negative free cash flow in both the prior quarter and the same quarter last year. Operating cash flow turned strongly positive, while capital expenditure remained stable.
- Revenue increased while operating cash flow shifted from negative to positive, driving free cash flow positive and expanding the margin. Capital expenditure was slightly lower than both comparison periods, contributing to the conversion.
- Compared to the immediately preceding quarter, revenue was higher, and operating cash flow, free cash flow, and margin all improved from negative to positive. Versus the same quarter one year earlier, revenue was higher, and operating cash flow, free cash flow, and margin each strengthened significantly.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$986.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$549.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$606.0M
Cash generated by operations before capital spending.
CapEx
$57.0M
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $8.1B | $439.0M | $57.0M | $382.0M | 4.7% |
| 2022-09-30 | $8.3B | $432.0M | $74.0M | $358.0M | 4.3% |
| 2022-12-31 | $8.6B | -$244.0M | $59.0M | -$303.0M | -3.5% |
| 2023-03-31 | $8.8B | $606.0M | $57.0M | $549.0M | 6.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -349.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$5.2B | 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 Turnaround
Operating cash flow improved from negative in the prior quarter and the year-ago quarter to positive in the current quarter. The filing attributes the increase primarily to adjustments for non-cash items and a decrease in cash consumed by working capital.
This directly drove the positive free cash flow and margin, marking a sharp reversal from the prior period's cash consumption.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow shifted from negative to positive, driving free cash flow positive and expanding the margin. Capital expenditure was slightly lower than both comparison periods, contributing to the conversion.
Compared to the immediately preceding quarter, revenue was higher, and operating cash flow, free cash flow, and margin all improved from negative to positive. Versus the same quarter one year earlier, revenue was higher, and operating cash flow, free cash flow, and margin each strengthened significantly.
Monitor the trajectory of operating cash flow given its transition from negative to positive and its reliance on working capital changes as described in the filing.