Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and margin weakened sequentially and year-over-year, as operating cash flow declined while revenue rose. Capital expenditure was lower than the year-ago quarter but slightly higher than the prior quarter.
- Revenue increased compared with both the prior quarter and the same quarter last year, but operating cash flow was lower, resulting in a lower free cash flow and a narrower free cash flow margin. Capital expenditure was moderately higher than the preceding quarter but lower than the year-ago level.
- Compared with the immediately preceding quarter, free cash flow and margin were lower, driven by slightly lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were substantially lower, primarily because operating cash flow fell sharply despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$138.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$122.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$290.8M
Cash generated by operations before capital spending.
CapEx
$168.8M
Capital spending and related asset purchases.
FCF margin
3.5%
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 | $3.3B | $32.6M | $208.0M | -$175.3M | -5.3% |
| 2022-09-30 | $3.3B | $220.7M | $161.6M | $59.1M | 1.8% |
| 2022-12-31 | $3.4B | $297.3M | $164.4M | $132.9M | 3.9% |
| 2023-03-31 | $3.5B | $290.8M | $168.8M | $122.0M | 3.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 74.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.7B | 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 Weakening
Operating cash flow for the quarter was lower than both the prior quarter and the year-ago period, while revenue increased. This indicates a deterioration in cash conversion efficiency.
The decline in operating cash flow directly reduced free cash flow and compressed the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased compared with both the prior quarter and the same quarter last year, but operating cash flow was lower, resulting in a lower free cash flow and a narrower free cash flow margin. Capital expenditure was moderately higher than the preceding quarter but lower than the year-ago level.
Compared with the immediately preceding quarter, free cash flow and margin were lower, driven by slightly lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were substantially lower, primarily because operating cash flow fell sharply despite higher revenue.
Monitor the trend of operating cash flow relative to revenue, as it is the primary driver of free cash flow changes.