Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus both the prior quarter and the same quarter last year, driven by higher revenue and stronger operating cash flow. The free cash flow margin widened significantly, reflecting a more efficient cash conversion profile.
- Revenue increased while operating cash flow rose at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year ago, yet the net effect was a substantial improvement in free cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was markedly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$653.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$125.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$286.2M
Cash generated by operations before capital spending.
CapEx
$161.0M
Capital spending and related asset purchases.
FCF margin
5.9%
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 | $2.1B | $422.8M | $159.8M | $263.0M | 12.6% |
| 2022-12-31 | $1.7B | $399.9M | $162.2M | $237.7M | 13.7% |
| 2023-03-31 | $1.6B | $221.3M | $193.6M | $27.7M | 1.7% |
| 2023-06-30 | $2.1B | $286.2M | $161.0M | $125.2M | 5.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 40.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$3.7B | 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 Strength
Operating cash flow rose to a level that was higher than both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow. This occurred alongside higher revenue and despite higher capital expenditure versus last year.
The stronger operating cash flow was the most observable factor behind the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow rose at a faster pace, leading to a higher free cash flow margin. Capital expenditure was lower than the prior quarter but higher than a year ago, yet the net effect was a substantial improvement in free cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter last year, revenue and operating cash flow were higher, capital expenditure was higher, and free cash flow was markedly higher.
Monitor the trajectory of capital expenditure relative to operating cash flow, as the current quarter's lower capex contributed to the free cash flow improvement.