Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. Revenue was slightly lower than the prior quarter but higher than a year ago.
- Operating cash flow rose while capital expenditure remained relatively stable, leading to a higher free cash flow and an improved free cash flow margin. The margin strengthened compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, free cash flow, and margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$368.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$139.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$205.4M
Cash generated by operations before capital spending.
CapEx
$65.9M
Capital spending and related asset purchases.
FCF margin
13.6%
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 | $1.1B | $234.8M | $89.0M | $145.7M | 13.3% |
| 2023-04-01 | $1.0B | $109.4M | $106.9M | $2.5M | 0.2% |
| 2023-07-01 | $1.1B | $148.1M | $67.4M | $80.7M | 7.6% |
| 2023-09-30 | $1.0B | $205.4M | $65.9M | $139.5M | 13.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 159.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.4% | 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 Strength
Operating cash flow was the strongest observable driver, increasing from both the prior quarter and the year-ago quarter, while capital expenditure remained relatively stable. This directly lifted free cash flow and the free cash flow margin.
Higher operating cash flow was the primary factor behind the improved free cash flow and margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose while capital expenditure remained relatively stable, leading to a higher free cash flow and an improved free cash flow margin. The margin strengthened compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, resulting in a stronger free cash flow margin. Versus the same quarter last year, all metrics improved: revenue, operating cash flow, free cash flow, and margin were all higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.