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, while free cash flow and free cash flow margin declined significantly from the prior quarter and weakened against the year-ago quarter. Operating cash flow was lower sequentially but fell compared to the year-ago period, resulting in a lower cash conversion rate.
- Revenue grew, yet operating cash flow fell substantially from both the preceding quarter and the year-ago quarter. Capital expenditure was higher than the same quarter last year but lower than the prior quarter. The combination produced free cash flow and free cash flow margin that weakened sharply versus the preceding quarter and were lower than one year earlier.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin were considerably lower, despite higher revenue. Versus the same quarter one year earlier, free cash flow declined while revenue was higher, and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$460.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$26.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$42.6M
Cash generated by operations before capital spending.
CapEx
$16.2M
Capital spending and related asset purchases.
FCF margin
4.2%
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 | $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% |
| 2023-09-30 | $624.7M | $42.6M | $16.2M | $26.4M | 4.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 29.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 Decline
Operating cash flow was markedly lower in the current quarter compared to both the prior quarter and the same quarter last year, even though revenue increased. This was the strongest observable driver of the lower free cash flow.
The operating cash flow decline directly reduced free cash flow and free cash flow margin relative to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew, yet operating cash flow fell substantially from both the preceding quarter and the year-ago quarter. Capital expenditure was higher than the same quarter last year but lower than the prior quarter. The combination produced free cash flow and free cash flow margin that weakened sharply versus the preceding quarter and were lower than one year earlier.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin were considerably lower, despite higher revenue. Versus the same quarter one year earlier, free cash flow declined while revenue was higher, and free cash flow margin weakened.
Monitor free cash flow margin trajectory given the wide swing from the prior quarter and the decline from the year-ago level.