Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, driven by higher operating cash flow and lower capital expenditure. The free cash flow margin strengthened compared to both periods.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased relative to both comparison periods, while capital expenditure decreased significantly. The combination yielded higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure lower. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$686.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$265.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$287.2M
Cash generated by operations before capital spending.
CapEx
$21.6M
Capital spending and related asset purchases.
FCF margin
27.7%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $960.2M | $287.2M | $21.6M | $265.6M | 27.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 218.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.3% | 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 higher free cash flow.
Higher operating cash flow, combined with lower capital expenditure, drove the improvement in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow increased relative to both comparison periods, while capital expenditure decreased significantly. The combination yielded higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher, with capital expenditure lower. Versus the same quarter last year, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher, while capital expenditure was lower.
Monitor whether the lower capital expenditure level persists or reverts toward historical levels in future quarters.