Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply from the prior quarter and was higher than the same quarter last year, driven by a strong increase in operating cash flow. The free cash flow margin widened significantly compared to both periods.
- Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow rose substantially from both periods. Capital expenditure increased moderately, yet free cash flow and its margin strengthened markedly, indicating improved cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were substantially higher, with free cash flow margin improving from near zero. Versus the same quarter one year earlier, revenue was slightly lower while operating cash flow and free cash flow were both higher, and the margin widened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$83.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$951.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.4B
Cash generated by operations before capital spending.
CapEx
$484.0M
Capital spending and related asset purchases.
FCF margin
30.6%
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 | -$1.3B | $240.0M | -$1.6B | -46.7% |
| 2022-09-30 | $4.8B | $815.0M | $296.0M | $519.0M | 10.7% |
| 2022-12-31 | $4.0B | $393.0M | $392.0M | $1.0M | 0.0% |
| 2023-03-31 | $3.1B | $1.4B | $484.0M | $951.0M | 30.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 136.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 15.6% | 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 Surge
Operating cash flow rose sharply from both the prior quarter and the year-ago quarter, far outpacing the change in revenue. This was the strongest observable driver of free cash flow improvement.
The surge in operating cash flow directly lifted free cash flow and its margin to levels well above both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago, while operating cash flow rose substantially from both periods. Capital expenditure increased moderately, yet free cash flow and its margin strengthened markedly, indicating improved cash conversion efficiency.
Compared to the immediately preceding quarter, revenue was lower but operating cash flow and free cash flow were substantially higher, with free cash flow margin improving from near zero. Versus the same quarter one year earlier, revenue was slightly lower while operating cash flow and free cash flow were both higher, and the margin widened.
Monitor whether the elevated operating cash flow level can be sustained given the lower revenue base compared to the prior quarter.