Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin were lower than both prior periods due to higher capital expenditure and lower operating cash flow conversion.
- Operating cash flow as a proportion of revenue decreased compared to both the preceding quarter and the year-ago quarter, while capital expenditure rose materially, resulting in a lower free cash flow and free cash flow margin.
- Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin were all lower, while revenue was slightly higher. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$420.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$107.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$123.2M
Cash generated by operations before capital spending.
CapEx
$15.7M
Capital spending and related asset purchases.
FCF margin
18.4%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $536.3M | $81.4M | $25.7M | $55.7M | 10.4% |
| 2022-09-30 | $556.9M | $81.5M | $5.9M | $75.6M | 13.6% |
| 2022-12-31 | $573.3M | $185.1M | $3.7M | $181.4M | 31.6% |
| 2023-03-31 | $584.4M | $123.2M | $15.7M | $107.5M | 18.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 123.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | 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.
Capital expenditure increase
Capital expenditure was higher than both the immediately preceding quarter and the same quarter one year earlier, representing the strongest observable driver of the decline in free cash flow.
Higher capital expenditure reduced free cash flow despite revenue growth, leading to a weakened free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue decreased compared to both the preceding quarter and the year-ago quarter, while capital expenditure rose materially, resulting in a lower free cash flow and free cash flow margin.
Compared to the prior quarter, operating cash flow, free cash flow, and free cash flow margin were all lower, while revenue was slightly higher. Versus the same quarter last year, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trend in capital expenditure, as it increased substantially from both prior periods and directly reduced free cash flow.