Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher than both the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position in the prior quarter but was lower than the year-ago quarter.
- Operating cash flow improved from negative to positive, while capital expenditure increased slightly. The resulting free cash flow margin improved sequentially but weakened compared to the prior year.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved significantly. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin declined.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$535.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$77.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$115.0M
Cash generated by operations before capital spending.
CapEx
$38.0M
Capital spending and related asset purchases.
FCF margin
3.2%
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 | $204.0M | $32.0M | $172.0M | 8.3% |
| 2022-12-31 | $2.3B | $410.0M | $67.0M | $343.0M | 14.9% |
| 2023-03-31 | $2.2B | -$25.0M | $32.0M | -$57.0M | -2.6% |
| 2023-06-30 | $2.4B | $115.0M | $38.0M | $77.0M | 3.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 41.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Sequential cash flow recovery
Operating cash flow turned from negative to positive, driving free cash flow into positive territory after a negative prior quarter.
This improvement allowed the company to generate positive free cash flow in the current quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved from negative to positive, while capital expenditure increased slightly. The resulting free cash flow margin improved sequentially but weakened compared to the prior year.
Compared to the immediately preceding quarter, operating cash flow and free cash flow both improved significantly. Versus the same quarter one year earlier, operating cash flow and free cash flow were lower, and the free cash flow margin declined.
Monitor changes in working capital, particularly accounts receivable and inventory, as the filing context indicates they were a significant use of cash.