Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved significantly versus both periods.
- Operating cash flow rose while capital expenditure declined, leading to higher free cash flow and an improved free cash flow margin. The conversion from revenue to free cash flow strengthened compared to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter last year, all metrics improved, with operating cash flow and free cash flow showing notable increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$454.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$150.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$153.2M
Cash generated by operations before capital spending.
CapEx
$2.3M
Capital spending and related asset purchases.
FCF margin
29.6%
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 | $436.5M | $83.6M | $9.7M | $73.9M | 16.9% |
| 2022-12-31 | $469.4M | $114.4M | $10.1M | $104.4M | 22.2% |
| 2023-03-31 | $481.7M | $133.8M | $8.7M | $125.0M | 26.0% |
| 2023-06-30 | $509.5M | $153.2M | $2.3M | $150.8M | 29.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -3799.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.5% | 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 compared to both the prior quarter and the year-ago quarter, supporting higher free cash flow. This was the strongest observable driver of the quarter's cash conversion performance.
The rise in operating cash flow, combined with lower capital expenditure, drove free cash flow higher and expanded the 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 rose while capital expenditure declined, leading to higher free cash flow and an improved free cash flow margin. The conversion from revenue to free cash flow strengthened compared to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower. Versus the same quarter last year, all metrics improved, with operating cash flow and free cash flow showing notable increases.
Monitor the trend in capital expenditure, which decreased this quarter after being higher in the prior quarter.