Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow improved from the prior quarter, but both were lower than the same quarter a year earlier. The free cash flow margin strengthened sequentially, though it remained below the year-ago level.
- Revenue was higher than the prior quarter, while operating cash flow increased at a greater rate, leading to a higher free cash flow margin. Capital expenditure decreased compared to the prior quarter, further supporting free cash flow.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and the free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$396.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$93.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$169.2M
Cash generated by operations before capital spending.
CapEx
$75.4M
Capital spending and related asset purchases.
FCF margin
12.4%
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 | $686.9M | $168.9M | $57.8M | $111.1M | 16.2% |
| 2022-12-31 | $708.7M | $230.8M | $94.9M | $135.9M | 19.2% |
| 2023-03-31 | $716.6M | $138.1M | $82.1M | $56.0M | 7.8% |
| 2023-06-30 | $753.8M | $169.2M | $75.4M | $93.8M | 12.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 60.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $588.5M | 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 rose more than revenue from the prior quarter, and capital expenditure declined, resulting in a higher free cash flow margin.
Free cash flow margin improved sequentially, reversing the prior quarter's decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter, while operating cash flow increased at a greater rate, leading to a higher free cash flow margin. Capital expenditure decreased compared to the prior quarter, further supporting free cash flow.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and the free cash flow margin were all lower.
Monitor capital expenditure trends, as the filing indicates increased spending on manufacturing capacity, which could affect future free cash flow.