Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were higher than both the prior quarter and the same quarter last year. The free cash flow margin was lower than the prior quarter but higher than the year-ago quarter.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin, derived from revenue, was stable compared to the year-ago quarter and declined versus the prior quarter.
- Compared to the prior quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin were lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was also higher and free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$668.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$241.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$261.0M
Cash generated by operations before capital spending.
CapEx
$19.7M
Capital spending and related asset purchases.
FCF margin
7.5%
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 | $2.9B | $259.6M | $10.6M | $249.0M | 8.4% |
| 2023-03-31 | $2.9B | -$84.6M | $23.2M | -$107.7M | -3.7% |
| 2023-06-30 | $3.0B | $299.5M | $13.4M | $286.1M | 9.4% |
| 2023-09-30 | $3.2B | $261.0M | $19.7M | $241.2M | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 142.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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
Revenue was the strongest observable driver, increasing compared to both the prior quarter and the year-ago quarter. This supported higher absolute free cash flow relative to last year.
Higher revenue contributed to increased free cash flow year over year, though the cash conversion efficiency as measured by margin declined sequentially.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow. The free cash flow margin, derived from revenue, was stable compared to the year-ago quarter and declined versus the prior quarter.
Compared to the prior quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin were lower. Compared to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were higher, while capital expenditure was also higher and free cash flow margin was slightly lower.
Monitor the trend in free cash flow margin given its weakening from the prior quarter despite higher revenue.