Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to the prior quarter and the same quarter a year earlier. Operating cash flow and free cash flow both improved, driving a higher free cash flow margin.
- The company converted a larger portion of revenue into operating cash flow, with capital expenditure remaining relatively stable, leading to positive free cash flow and margin improvement. The filing noted that liquidity was supported by cash and marketable securities, despite an accumulated deficit from historical operations.
- Compared to the prior quarter, revenue and operating cash flow were higher, and free cash flow margin improved. Versus the same quarter a year earlier, all metrics improved significantly, with free cash flow turning from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.6B
Trailing twelve-month free cash flow.
Quarter free cash flow
$456.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$485.0M
Cash generated by operations before capital spending.
CapEx
$29.0M
Capital spending and related asset purchases.
FCF margin
19.8%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $2.3B | $485.0M | $29.0M | $456.0M | 19.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -296.1% | 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.
Operating cash flow growth
Operating cash flow increased from the prior quarter and from the same quarter a year earlier, driving the improvement in free cash flow and margin.
The higher operating cash flow was the primary factor behind the positive free cash flow and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a larger portion of revenue into operating cash flow, with capital expenditure remaining relatively stable, leading to positive free cash flow and margin improvement. The filing noted that liquidity was supported by cash and marketable securities, despite an accumulated deficit from historical operations.
Compared to the prior quarter, revenue and operating cash flow were higher, and free cash flow margin improved. Versus the same quarter a year earlier, all metrics improved significantly, with free cash flow turning from negative to positive.
Monitor the level of capital expenditure as it remained steady while operating cash flow grew.