Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a negative result one year earlier, though it decreased from the prior quarter. The free cash flow margin improved year over year but weakened sequentially.
- Revenue increased while operating cash flow declined, resulting in a lower free cash flow margin. Capital expenditure was slightly reduced, but the drop in operating cash flow was the primary factor in the weaker cash conversion.
- Compared to the prior quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin narrowed. Versus the same quarter one year earlier, operating cash flow improved from negative to positive, and free cash flow also turned positive, with a higher margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$321.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$83.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$113.3M
Cash generated by operations before capital spending.
CapEx
$29.5M
Capital spending and related asset purchases.
FCF margin
1.5%
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 | $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% |
| 2023-06-30 | $5.5B | $113.3M | $29.5M | $83.8M | 1.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -84.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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.
Year-over-year cash flow turnaround
Operating cash flow shifted from negative to positive compared to the same quarter last year, and capital expenditure was lower. This drove free cash flow from a negative to a positive figure.
The company generated positive free cash flow this quarter versus a negative result one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow declined, resulting in a lower free cash flow margin. Capital expenditure was slightly reduced, but the drop in operating cash flow was the primary factor in the weaker cash conversion.
Compared to the prior quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin narrowed. Versus the same quarter one year earlier, operating cash flow improved from negative to positive, and free cash flow also turned positive, with a higher margin.
Monitor whether operating cash flow can sustain its positive level given the sequential decline from the prior quarter.