Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved from the prior quarter and from the same quarter last year. Free cash flow turned positive after a negative prior quarter and increased from the year-ago period.
- Operating cash flow as a proportion of revenue strengthened from the prior quarter and the year-ago quarter, supporting a positive free cash flow margin after a negative prior quarter. Capital expenditure increased from the prior quarter but was essentially stable relative to the year-ago period.
- Compared to the prior quarter, revenue was higher and free cash flow improved from a negative to a positive figure. Compared to the same quarter last year, revenue was higher, free cash flow was higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$110.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$29.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$42.7M
Cash generated by operations before capital spending.
CapEx
$13.1M
Capital spending and related asset purchases.
FCF margin
7.9%
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 | $311.8M | $40.9M | $14.4M | $26.5M | 8.5% |
| 2022-12-31 | $333.4M | $131.1M | $11.6M | $119.5M | 35.9% |
| 2023-03-31 | $344.3M | -$56.3M | $8.5M | -$64.8M | -18.8% |
| 2023-06-30 | $373.3M | $42.7M | $13.1M | $29.5M | 7.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 253.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.5% | 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 Recovery
Operating cash flow turned positive from a negative prior quarter and increased from the year-ago quarter. This was the strongest observable driver behind the improvement in free cash flow.
Free cash flow margin shifted from negative to positive, supported by stronger cash generation from operations.
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 strengthened from the prior quarter and the year-ago quarter, supporting a positive free cash flow margin after a negative prior quarter. Capital expenditure increased from the prior quarter but was essentially stable relative to the year-ago period.
Compared to the prior quarter, revenue was higher and free cash flow improved from a negative to a positive figure. Compared to the same quarter last year, revenue was higher, free cash flow was higher, and free cash flow margin improved.
Monitor whether operating cash flow can sustain its positive level in future quarters.