Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased versus both the prior quarter and the year-ago quarter. Free cash flow and free cash flow margin declined sequentially but were relatively stable year over year.
- Operating cash flow decreased sequentially while capital expenditure increased, leading to a lower free cash flow and free cash flow margin compared with the preceding quarter. Against the same quarter last year, operating cash flow and free cash flow were slightly higher, with capital expenditure lower.
- Compared with the immediately preceding quarter, free cash flow margin weakened, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow margin was slightly lower, although revenue was higher and operating cash flow was marginally improved.
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
$238.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$272.1M
Cash generated by operations before capital spending.
CapEx
$33.7M
Capital spending and related asset purchases.
FCF margin
22.3%
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 | $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% |
| 2023-12-31 | $1.1B | $272.1M | $33.7M | $238.4M | 22.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 73.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.2% | 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 was higher both sequentially and year over year, providing a broader base for cash generation. This was the most observable positive metric in the quarter.
Higher revenue supported free cash flow that was stable compared with the year-ago period despite lower conversion efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow decreased sequentially while capital expenditure increased, leading to a lower free cash flow and free cash flow margin compared with the preceding quarter. Against the same quarter last year, operating cash flow and free cash flow were slightly higher, with capital expenditure lower.
Compared with the immediately preceding quarter, free cash flow margin weakened, driven by lower operating cash flow and higher capital expenditure. Versus the same quarter one year earlier, free cash flow margin was slightly lower, although revenue was higher and operating cash flow was marginally improved.
Monitor the magnitude of the sequential decline in operating cash flow relative to revenue growth for signs of cash conversion efficiency.