Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow margin improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow relative to revenue. The company noted in its filing that it expects its operating cash flows to remain robust given its franchise-heavy business model.
- The company converted a portion of its revenue into free cash flow after deducting capital expenditures. The resulting free cash flow margin was higher than in both comparison periods.
- Compared to the immediately preceding quarter, revenue was lower but free cash flow margin improved as capital expenditure declined more sharply than operating cash flow. Versus the same quarter one year earlier, all key metrics—revenue, operating cash flow, capital expenditure, and free cash flow—were higher, with the margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$287.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$349.0M
Cash generated by operations before capital spending.
CapEx
$62.0M
Capital spending and related asset purchases.
FCF margin
17.4%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.6B | $269.0M | $55.0M | $214.0M | 13.1% |
| 2022-09-30 | $1.6B | $453.0M | $61.0M | $392.0M | 23.9% |
| 2022-12-31 | $2.0B | $452.0M | $121.0M | $331.0M | 16.4% |
| 2023-03-31 | $1.6B | $349.0M | $62.0M | $287.0M | 17.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 95.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.8% | 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 Growth
Operating cash flow increased compared to the year-ago quarter, outpacing the growth in revenue and contributing to a higher free cash flow margin.
This improvement in cash generation strengthened the company's ability to fund investments and shareholder returns.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a portion of its revenue into free cash flow after deducting capital expenditures. The resulting free cash flow margin was higher than in both comparison periods.
Compared to the immediately preceding quarter, revenue was lower but free cash flow margin improved as capital expenditure declined more sharply than operating cash flow. Versus the same quarter one year earlier, all key metrics—revenue, operating cash flow, capital expenditure, and free cash flow—were higher, with the margin also improved.
Monitor capital expenditure levels, as they varied significantly between the current quarter and both comparison periods.