Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the preceding quarter and the same quarter one year earlier. Operating cash flow and free cash flow improved substantially, turning positive from negative in the prior quarter, and free cash flow margin strengthened.
- The conversion from revenue to operating cash flow improved, with capital expenditure lower than both prior periods, resulting in positive free cash flow and a margin higher than the same quarter one year earlier.
- Compared to the preceding quarter, revenue was higher, operating cash flow was significantly higher, capital expenditure was lower, and free cash flow turned from negative to positive with an improved margin. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$79.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$262.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$294.4M
Cash generated by operations before capital spending.
CapEx
$32.3M
Capital spending and related asset purchases.
FCF margin
5.3%
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 | $4.4B | -$114.6M | $44.2M | -$158.9M | -3.6% |
| 2022-09-30 | $4.5B | $15.7M | $36.3M | -$20.6M | -0.5% |
| 2022-12-31 | $4.7B | $45.4M | $49.1M | -$3.7M | -0.1% |
| 2023-03-31 | $5.0B | $294.4M | $32.3M | $262.1M | 5.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 273.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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.
Improved Operating Cash Flow and Lower Capex
Operating cash flow increased significantly relative to revenue, while capital expenditure was reduced. This combination drove the improvement in free cash flow and margin.
Free cash flow turned positive and the margin strengthened compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The conversion from revenue to operating cash flow improved, with capital expenditure lower than both prior periods, resulting in positive free cash flow and a margin higher than the same quarter one year earlier.
Compared to the preceding quarter, revenue was higher, operating cash flow was significantly higher, capital expenditure was lower, and free cash flow turned from negative to positive with an improved margin. Compared to the same quarter one year earlier, revenue was higher, operating cash flow was higher, capital expenditure was lower, and free cash flow and margin were higher.
Monitor capital expenditure trends, as the amount decreased from both the preceding quarter and the same quarter one year earlier.