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 last year, driven by higher operating cash flow. The free cash flow margin strengthened sequentially and year-over-year.
- Revenue was stable sequentially and higher year-over-year. Operating cash flow increased relative to both periods, while capital expenditure was higher than the prior quarter but lower than the year-ago quarter. The resulting free cash flow and free cash flow margin both improved compared with the preceding quarter and the same quarter one year earlier.
- Compared with the immediately preceding quarter, free cash flow was higher and the margin strengthened. Versus the same quarter one year earlier, free cash flow was also higher and the margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$944.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$227.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$285.9M
Cash generated by operations before capital spending.
CapEx
$58.3M
Capital spending and related asset purchases.
FCF margin
15.6%
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 | $1.4B | $351.1M | $80.7M | $270.4M | 18.8% |
| 2023-03-31 | $1.4B | $273.1M | $25.0M | $248.1M | 17.4% |
| 2023-06-30 | $1.5B | $236.1M | $38.2M | $197.9M | 13.6% |
| 2023-09-30 | $1.5B | $285.9M | $58.3M | $227.6M | 15.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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.
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. Revenue was stable sequentially and higher year-over-year, supporting the cash generation.
The increase in operating cash flow directly strengthened free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially and higher year-over-year. Operating cash flow increased relative to both periods, while capital expenditure was higher than the prior quarter but lower than the year-ago quarter. The resulting free cash flow and free cash flow margin both improved compared with the preceding quarter and the same quarter one year earlier.
Compared with the immediately preceding quarter, free cash flow was higher and the margin strengthened. Versus the same quarter one year earlier, free cash flow was also higher and the margin improved.
Monitor the trend in capital expenditure, which was higher sequentially and could affect future free cash flow conversion.