Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased, but operating cash flow decreased from the prior quarter, leading to a lower free cash flow margin. Compared to the same quarter last year, both revenue and free cash flow improved.
- Revenue rose while operating cash flow fell from the prior quarter, resulting in a lower free cash flow margin. Capital expenditure remained minimal, so free cash flow closely tracked operating cash flow.
- Compared to the prior quarter, free cash flow margin weakened. Compared to the same quarter last year, free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$876.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$198.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$199.1M
Cash generated by operations before capital spending.
CapEx
$183000
Capital spending and related asset purchases.
FCF margin
23.0%
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 | $702.3M | $163.2M | $41000 | $163.2M | 23.2% |
| 2023-03-31 | $715.4M | $288.7M | $70000 | $288.6M | 40.3% |
| 2023-06-30 | $750.2M | $229.8M | $3.7M | $226.0M | 30.1% |
| 2023-09-30 | $864.3M | $199.1M | $183000 | $198.9M | 23.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 183.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | 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.
Revenue growth
Revenue increased compared to both the prior quarter and the same quarter last year, driving higher absolute free cash flow despite a lower margin.
The revenue increase supported a higher free cash flow amount than the same quarter last year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow fell from the prior quarter, resulting in a lower free cash flow margin. Capital expenditure remained minimal, so free cash flow closely tracked operating cash flow.
Compared to the prior quarter, free cash flow margin weakened. Compared to the same quarter last year, free cash flow margin was slightly lower.
Monitor the trend in operating cash flow relative to revenue, as the gap widened this quarter.