Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
This quarter's free cash flow margin improved compared to both the prior quarter and the same quarter last year, driven by higher revenue and lower capital spending. Operating cash flow also increased, supporting the stronger cash conversion.
- Revenue rose while capital expenditure declined, resulting in a higher free cash flow margin. Operating cash flow grew at a faster pace than revenue, indicating improved cash conversion efficiency.
- Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow margin improved. Versus the same quarter a year earlier, all metrics showed similar directional changes with revenue and free cash flow higher and capital expenditure lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$466.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$131.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$190.3M
Cash generated by operations before capital spending.
CapEx
$59.0M
Capital spending and related asset purchases.
FCF margin
15.1%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $769.6M | $293.2M | $108.2M | $185.0M | 24.0% |
| 2022-12-31 | $815.2M | $132.5M | $63.5M | $69.0M | 8.5% |
| 2023-03-31 | $741.5M | $155.4M | $74.7M | $80.7M | 10.9% |
| 2023-06-30 | $871.3M | $190.3M | $59.0M | $131.3M | 15.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 113.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.8% | 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.
Revenue growth and capital discipline
Revenue was higher and capital expenditure was lower, which together produced a higher free cash flow. This combination strengthened the free cash flow margin relative to both the prior quarter and the same quarter last year.
This drove the free cash flow margin to its highest level among the periods shown.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while capital expenditure declined, resulting in a higher free cash flow margin. Operating cash flow grew at a faster pace than revenue, indicating improved cash conversion efficiency.
Compared to the prior quarter, revenue and operating cash flow were higher, capital expenditure was lower, and free cash flow margin improved. Versus the same quarter a year earlier, all metrics showed similar directional changes with revenue and free cash flow higher and capital expenditure lower.
Monitor the trend in capital expenditure, as it decreased this quarter and is a key factor in free cash flow improvement.