Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter a year earlier. The free cash flow margin strengthened relative to both comparison periods.
- Operating cash flow was higher than capital expenditure, producing positive free cash flow. The free cash flow margin indicates the portion of revenue converted to free cash flow improved from both the preceding quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were higher as well.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$509.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$145.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$175.2M
Cash generated by operations before capital spending.
CapEx
$29.9M
Capital spending and related asset purchases.
FCF margin
24.0%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $605.9M | $175.2M | $29.9M | $145.3M | 24.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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 Increase
Operating cash flow was higher than both the prior quarter and the year-ago quarter, and the increase was larger than the rise in capital expenditure, leading to improved free cash flow.
Higher operating cash flow was the primary factor behind the improvement in free cash flow and 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 was higher than capital expenditure, producing positive free cash flow. The free cash flow margin indicates the portion of revenue converted to free cash flow improved from both the preceding quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter one year earlier, all metrics were higher as well.
Changes in capital expenditure, which rose compared to both the prior quarter and the year-ago quarter, should be monitored as they affect free cash flow.