Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to the same quarter one year earlier, driven by higher operating cash flow. However, free cash flow and margin weakened relative to the immediately preceding quarter due to increased capital expenditure.
- Revenue was stable across periods. Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure increased versus both comparison periods, resulting in free cash flow that was higher year-over-year but lower sequentially. The free cash flow margin followed the same pattern.
- Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by lower operating cash flow and higher capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow despite higher capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$326.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$549.0M
Cash generated by operations before capital spending.
CapEx
$223.0M
Capital spending and related asset purchases.
FCF margin
16.3%
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 | $2.1B | $336.0M | $146.0M | $190.0M | 9.3% |
| 2022-09-30 | $2.0B | $526.0M | $154.0M | $372.0M | 18.6% |
| 2022-12-31 | $2.0B | $741.0M | $171.0M | $570.0M | 27.9% |
| 2023-03-31 | $2.0B | $549.0M | $223.0M | $326.0M | 16.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 59.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$4.5B | 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 Strength
Operating cash flow was substantially higher than the same quarter one year earlier, which was the primary support for the year-over-year improvement in free cash flow.
This driver enabled free cash flow to improve year-over-year despite a notable increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable across periods. Operating cash flow was higher than the year-ago quarter but lower than the prior quarter. Capital expenditure increased versus both comparison periods, resulting in free cash flow that was higher year-over-year but lower sequentially. The free cash flow margin followed the same pattern.
Compared to the immediately preceding quarter, free cash flow and margin were lower, driven by lower operating cash flow and higher capital expenditure. Compared to the same quarter one year earlier, free cash flow and margin were higher, supported by stronger operating cash flow despite higher capital expenditure.
Monitor capital expenditure levels, as the increase in the current quarter was a key factor in the sequential decline in free cash flow.