Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
In the current quarter, revenue, operating cash flow, and free cash flow all increased compared to both the prior quarter and the same quarter last year. The free cash flow margin remained broadly stable from the prior quarter and improved significantly from a year ago.
- The company converted a higher proportion of revenue into operating cash flow than in the year-ago quarter, while capital expenditure decreased from the prior year, supporting free cash flow generation.
- Compared to the immediately preceding quarter, revenue and free cash flow were higher, but the free cash flow margin was slightly lower. Compared to the same quarter one year earlier, all metrics improved substantially.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$370.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$398.0M
Cash generated by operations before capital spending.
CapEx
$28.0M
Capital spending and related asset purchases.
FCF margin
17.1%
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 | $1.8B | $23.0M | $45.0M | -$22.0M | -1.2% |
| 2023-03-31 | $2.0B | $397.0M | $39.0M | $358.0M | 17.6% |
| 2023-06-30 | $2.1B | $393.0M | $27.0M | $366.0M | 17.2% |
| 2023-09-30 | $2.2B | $398.0M | $28.0M | $370.0M | 17.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -506.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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.
Revenue Growth and Operating Cash Flow Expansion
Revenue increased from the prior quarter and year ago, while operating cash flow grew at a faster pace, driving free cash flow higher despite a small increase in capital expenditure.
The improvement in cash generation from operations strengthened the company's liquidity position.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a higher proportion of revenue into operating cash flow than in the year-ago quarter, while capital expenditure decreased from the prior year, supporting free cash flow generation.
Compared to the immediately preceding quarter, revenue and free cash flow were higher, but the free cash flow margin was slightly lower. Compared to the same quarter one year earlier, all metrics improved substantially.
Monitor the trajectory of free cash flow margin relative to the prior quarter, as the company continues to report an accumulated deficit.