Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow strengthened sequentially and year-over-year, supported by higher operating cash flow and stable capital expenditure. The free cash flow margin improved compared to both the prior quarter and the same quarter last year.
- Revenue was steady sequentially, while operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure remained nearly unchanged from the prior quarter.
- Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow on similar revenue. Versus the same quarter one year earlier, all key metrics improved, with operating cash flow and free cash flow significantly higher despite slightly lower revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$417.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$108.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$127.6M
Cash generated by operations before capital spending.
CapEx
$18.9M
Capital spending and related asset purchases.
FCF margin
10.6%
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 |
|---|---|---|---|---|---|
| 2022-06-19 | $1.1B | $74.6M | $20.2M | $54.4M | 5.1% |
| 2022-09-11 | $1.1B | $176.7M | $17.8M | $158.9M | 14.9% |
| 2023-03-26 | $1.0B | $114.7M | $19.0M | $95.7M | 9.3% |
| 2023-06-18 | $1.0B | $127.6M | $18.9M | $108.7M | 10.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 uplift
Operating cash flow increased sequentially and year-over-year, while capital expenditure remained stable, resulting in higher free cash flow. The improvement in operating cash flow was the strongest observable driver of the quarter's free cash flow performance.
The higher operating cash flow directly improved free cash flow and margin, without requiring a change in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was steady sequentially, while operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Capital expenditure remained nearly unchanged from the prior quarter.
Compared to the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow on similar revenue. Versus the same quarter one year earlier, all key metrics improved, with operating cash flow and free cash flow significantly higher despite slightly lower revenue.
Monitor the trajectory of operating cash flow, as its sequential growth was the primary driver of the improvement in free cash flow.