Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow increased compared to both the prior quarter and the same quarter last year. Free cash flow margin improved from the prior quarter but was lower than the year-ago period.
- Operating cash flow rose relative to the previous quarter, while capital expenditure declined, resulting in higher free cash flow. Compared to the year-ago quarter, operating cash flow was lower but capital expenditure was significantly lower, leading to a higher free cash flow despite a lower margin.
- Sequentially, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher. Year-over-year, revenue and free cash flow were higher, but operating cash flow was lower and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$499.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$218.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$269.2M
Cash generated by operations before capital spending.
CapEx
$50.4M
Capital spending and related asset purchases.
FCF margin
22.4%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $975.0M | $269.2M | $50.4M | $218.8M | 22.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 181.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.2% | 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 expenditure reduction
Revenue was higher than both comparison periods, and capital expenditure was lower than both. Free cash flow was higher than both prior periods.
Free cash flow margin improved sequentially but was lower than the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose relative to the previous quarter, while capital expenditure declined, resulting in higher free cash flow. Compared to the year-ago quarter, operating cash flow was lower but capital expenditure was significantly lower, leading to a higher free cash flow despite a lower margin.
Sequentially, all metrics improved: revenue, operating cash flow, free cash flow, and margin were higher. Year-over-year, revenue and free cash flow were higher, but operating cash flow was lower and free cash flow margin weakened.
Monitor the trend in capital expenditure relative to revenue, as it varied notably between periods.