Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow was lower than the prior quarter but higher than the year-ago quarter, while free cash flow margin weakened sequentially but improved year-over-year.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but significantly lower than the year-ago quarter, resulting in free cash flow that followed the pattern of operating cash flow.
- Compared to the prior quarter, revenue increased while operating cash flow and free cash flow decreased, leading to a lower free cash flow margin. Compared to the same quarter last year, all metrics improved, with free cash flow margin rising notably.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$373.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$395.9M
Cash generated by operations before capital spending.
CapEx
$22.0M
Capital spending and related asset purchases.
FCF margin
36.5%
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 | $899.9M | $263.6M | $36.9M | $226.7M | 25.2% |
| 2023-03-31 | $1.0B | $267.4M | $26.7M | $240.7M | 23.6% |
| 2023-06-30 | $976.6M | $413.8M | $19.9M | $393.8M | 40.3% |
| 2023-09-30 | $1.0B | $395.9M | $22.0M | $373.9M | 36.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 147.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Year-over-year free cash flow growth
Free cash flow increased substantially compared to the same quarter last year, supported by higher operating cash flow and lower capital expenditure.
This improvement reflects stronger cash generation from operations relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure was slightly higher than the prior quarter but significantly lower than the year-ago quarter, resulting in free cash flow that followed the pattern of operating cash flow.
Compared to the prior quarter, revenue increased while operating cash flow and free cash flow decreased, leading to a lower free cash flow margin. Compared to the same quarter last year, all metrics improved, with free cash flow margin rising notably.
Monitor the trend in operating cash flow as a proportion of revenue, as it declined sequentially and is a key driver of free cash flow margin.