Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved sequentially as revenue and operating cash flow rose, driving higher free cash flow and an enhanced margin. Compared to the same quarter last year, revenue was higher but free cash flow margin was lower, as operating cash flow was similar while capital expenditure increased.
- Revenue increased, operating cash flow improved, and capital expenditure was moderately higher, resulting in free cash flow growth and a higher margin compared to the prior quarter.
- Sequentially, revenue, operating cash flow, free cash flow, and margin all improved. Year-over-year, revenue was higher but free cash flow margin was lower, as operating cash flow was similar while capital expenditure was slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.9B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.1B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.1B
Cash generated by operations before capital spending.
CapEx
$59.6M
Capital spending and related asset purchases.
FCF margin
43.1%
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 | $2.3B | $955.5M | $54.2M | $901.3M | 38.6% |
| 2022-12-31 | $2.3B | $1.1B | $33.6M | $1.0B | 45.4% |
| 2023-03-31 | $2.4B | $899.9M | $42.1M | $857.8M | 36.1% |
| 2023-06-30 | $2.5B | $1.1B | $59.6M | $1.1B | 43.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 117.4% | 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.
Operating Cash Flow Increase
Operating cash flow improved significantly compared to the prior quarter, outpacing the revenue increase and supporting higher free cash flow.
This contributed to a higher free cash flow margin despite a modest rise in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, operating cash flow improved, and capital expenditure was moderately higher, resulting in free cash flow growth and a higher margin compared to the prior quarter.
Sequentially, revenue, operating cash flow, free cash flow, and margin all improved. Year-over-year, revenue was higher but free cash flow margin was lower, as operating cash flow was similar while capital expenditure was slightly higher.
Capital expenditure increased relative to both the prior quarter and the year-ago period, warranting attention.