Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved from the preceding quarter, while capital expenditure edged higher, resulting in stronger free cash flow. Compared to the same quarter a year earlier, free cash flow was broadly similar, with operating cash flow and capital expenditure both slightly higher.
- Revenue was stable relative to both the prior quarter and the year-ago quarter, while operating cash flow and free cash flow showed improvement from the preceding quarter but were near year-ago levels. The free cash flow margin strengthened from the prior quarter but was slightly weaker than a year earlier.
- Compared to the immediate prior quarter, operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin. Relative to the same quarter one year ago, operating cash flow was slightly higher while capital expenditure was also higher, leaving free cash flow essentially unchanged and the margin marginally lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$521.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$158.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$179.8M
Cash generated by operations before capital spending.
CapEx
$21.3M
Capital spending and related asset purchases.
FCF margin
15.4%
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 |
|---|---|---|---|---|---|
| 2022-09-11 | $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% |
| 2023-09-10 | $1.0B | $179.8M | $21.3M | $158.5M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 107.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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 Rebound
Operating cash flow improved meaningfully from the prior quarter, while revenue was stable. This recovery was the strongest observable driver of the quarter’s free cash flow increase, as capital expenditure rose only modestly.
The improvement in operating cash flow directly supported a higher free cash flow and margin, without relying on revenue growth.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable relative to both the prior quarter and the year-ago quarter, while operating cash flow and free cash flow showed improvement from the preceding quarter but were near year-ago levels. The free cash flow margin strengthened from the prior quarter but was slightly weaker than a year earlier.
Compared to the immediate prior quarter, operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin. Relative to the same quarter one year ago, operating cash flow was slightly higher while capital expenditure was also higher, leaving free cash flow essentially unchanged and the margin marginally lower.
Monitor the level of capital expenditure relative to operating cash flow, as a larger reinvestment could moderate future free cash flow growth.