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 one year earlier, driven by higher operating cash flow. Revenue increased while capital expenditure remained relatively stable, lifting free cash flow margin.
- Revenue conversion into operating cash flow strengthened as operating cash flow grew faster than revenue. With capital expenditure nearly flat, free cash flow expanded and free cash flow margin rose compared to both prior periods.
- Compared to the immediately preceding quarter, all key metrics—revenue, operating cash flow, free cash flow, and free cash flow margin—were higher. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow higher and capital expenditure slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$133.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$48.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$62.9M
Cash generated by operations before capital spending.
CapEx
$14.0M
Capital spending and related asset purchases.
FCF margin
11.9%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $412.7M | $62.9M | $14.0M | $48.9M | 11.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 80.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | 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 was higher than both the prior quarter and the year-ago quarter, providing the primary lift to free cash flow.
Higher operating cash flow directly increased free cash flow and margin without requiring a change in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow strengthened as operating cash flow grew faster than revenue. With capital expenditure nearly flat, free cash flow expanded and free cash flow margin rose compared to both prior periods.
Compared to the immediately preceding quarter, all key metrics—revenue, operating cash flow, free cash flow, and free cash flow margin—were higher. Versus the same quarter one year earlier, free cash flow and margin also improved, with operating cash flow higher and capital expenditure slightly lower.
Monitor whether the increase in operating cash flow relative to revenue can be sustained in future quarters.