Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the same quarter one year earlier but higher than the prior quarter. Free cash flow margin improved compared with both the prior quarter and the same quarter one year earlier.
- Operating cash flow was higher than both the prior quarter and the same quarter one year earlier, while capital expenditure was higher than the prior quarter but lower than the same quarter one year earlier. Free cash flow turned positive compared with the same quarter one year earlier and was higher than the prior quarter.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher. Compared with the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$469.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$135.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$199.9M
Cash generated by operations before capital spending.
CapEx
$64.1M
Capital spending and related asset purchases.
FCF margin
14.4%
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 | $969.6M | $127.0M | $76.0M | $51.0M | 5.3% |
| 2022-09-30 | $890.3M | $266.5M | $75.3M | $191.1M | 21.5% |
| 2022-12-31 | $901.5M | $144.7M | $53.2M | $91.5M | 10.1% |
| 2023-03-31 | $943.1M | $199.9M | $64.1M | $135.8M | 14.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 154.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | 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 improvement
Operating cash flow was higher than both the prior quarter and the same quarter one year earlier, contributing to a higher free cash flow margin.
Free cash flow margin improved to a positive level from a negative level one year earlier.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was higher than both the prior quarter and the same quarter one year earlier, while capital expenditure was higher than the prior quarter but lower than the same quarter one year earlier. Free cash flow turned positive compared with the same quarter one year earlier and was higher than the prior quarter.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow were all higher. Compared with the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it was higher than the prior quarter.