Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin strengthened significantly versus both periods.
- Operating cash flow as a proportion of revenue was higher than in the preceding quarter and markedly higher than a year ago. After deducting capital expenditure, free cash flow margin followed a similar upward trajectory, reflecting improved cash conversion efficiency.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow showing the largest relative gains.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$611.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$193.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$251.8M
Cash generated by operations before capital spending.
CapEx
$58.5M
Capital spending and related asset purchases.
FCF margin
19.3%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $1.0B | $251.8M | $58.5M | $193.2M | 19.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 172.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.8% | 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 both the prior quarter and the same quarter last year, providing the primary support for the rise in free cash flow. This improvement occurred alongside higher revenue and lower capital expenditure.
The stronger operating cash flow, combined with reduced capital spending, drove free cash flow and its margin to higher levels than in either comparison period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than in the preceding quarter and markedly higher than a year ago. After deducting capital expenditure, free cash flow margin followed a similar upward trajectory, reflecting improved cash conversion efficiency.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter one year earlier, all metrics improved, with operating cash flow and free cash flow showing the largest relative gains.
Monitor the trend in capital expenditure, which decreased from both the prior quarter and the year-ago period, as it directly affects the conversion of operating cash flow into free cash flow.