Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, free cash flow and margin decreased from the prior quarter but increased compared to the same quarter last year. Operating cash flow was lower sequentially, while revenue was higher.
- Revenue was higher than both prior periods. Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter. As a result, free cash flow and free cash flow margin weakened sequentially but improved year over year.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, while revenue was higher. Compared to the same quarter one year earlier, all metrics were higher except capital expenditure, which was also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$269.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$329.0M
Cash generated by operations before capital spending.
CapEx
$60.0M
Capital spending and related asset purchases.
FCF margin
15.9%
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 | $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% |
| 2023-06-30 | $1.7B | $329.0M | $60.0M | $269.0M | 15.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 64.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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.
Franchise cash generation model
The company's filing indicates a history of substantial cash flows from extensive franchise operations that require limited company investment. This underlying model supports consistent cash generation.
The franchise model supports consistent cash flow generation with lower capital requirements.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both prior periods. Operating cash flow was lower than the prior quarter but higher than a year ago. Capital expenditure was slightly lower than the prior quarter but higher than the year-ago quarter. As a result, free cash flow and free cash flow margin weakened sequentially but improved year over year.
Compared to the immediately preceding quarter, free cash flow and margin were lower, while revenue was higher. Compared to the same quarter one year earlier, all metrics were higher except capital expenditure, which was also higher.
Monitor the sequential decline in operating cash flow relative to revenue growth.