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 sequentially and year-over-year.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin rose as free cash flow grew faster than revenue.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, all metrics were also higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$597.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$201.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$231.3M
Cash generated by operations before capital spending.
CapEx
$29.9M
Capital spending and related asset purchases.
FCF margin
20.4%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $966.4M | $119.9M | $10.7M | $109.2M | 11.3% |
| 2023-06-30 | $960.8M | $140.3M | $13.5M | $126.8M | 13.2% |
| 2023-09-30 | $937.5M | $178.8M | $18.5M | $160.3M | 17.1% |
| 2023-12-31 | $988.1M | $231.3M | $29.9M | $201.4M | 20.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 146.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $212.6M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Stronger operating cash flow
Operating cash flow was the strongest observable driver, increasing more than revenue compared to both the prior quarter and the year-ago quarter. This directly lifted free cash flow and the free cash flow margin.
Higher operating cash flow was the primary factor behind the improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin rose as free cash flow grew faster than revenue.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year ago, all metrics were also higher.
Monitor whether capital expenditure remains at a higher level relative to the prior quarter and year-ago quarter.