Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow increased significantly compared to both the prior quarter and the same quarter last year, while capital expenditure was lower year over year. Free cash flow turned positive and its margin improved, reflecting stronger cash conversion.
- Revenue was stable compared to the prior quarter and higher year over year. Operating cash flow rose, capital expenditure was slightly lower than the prior quarter and much lower than a year ago, leading to a substantial increase in free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow and margin improved, driven by higher operating cash flow with stable capital expenditure. Versus the same quarter a year earlier, free cash flow turned from negative to positive and margin strengthened, supported by a large increase in operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$509.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$195.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$362.9M
Cash generated by operations before capital spending.
CapEx
$167.9M
Capital spending and related asset purchases.
FCF margin
5.5%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $3.5B | $362.9M | $167.9M | $195.0M | 5.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.6B | 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 higher than both the preceding quarter and the year-ago quarter, while capital expenditure remained relatively stable or declined. This combination drove free cash flow and its margin higher.
The increase in operating cash flow was the strongest observable factor behind the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior quarter and higher year over year. Operating cash flow rose, capital expenditure was slightly lower than the prior quarter and much lower than a year ago, leading to a substantial increase in free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow and margin improved, driven by higher operating cash flow with stable capital expenditure. Versus the same quarter a year earlier, free cash flow turned from negative to positive and margin strengthened, supported by a large increase in operating cash flow and lower capital expenditure.
Monitor capital expenditure levels, as they were lower than the prior year while free cash flow benefited from that reduction.