Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and a year ago, but free cash flow fell sharply from the prior quarter due to lower operating cash flow. Versus the same quarter last year, free cash flow improved as operating cash flow rose.
- Revenue grew, but operating cash flow declined significantly from the prior quarter, leading to a much lower free cash flow margin. Capital expenditure was slightly higher than both comparison periods, further dampening cash conversion.
- Relative to the preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower, representing a sharp deterioration in cash generation efficiency. Compared with the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$319.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$28.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$48.0M
Cash generated by operations before capital spending.
CapEx
$19.1M
Capital spending and related asset purchases.
FCF margin
3.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $726.1M | $82.7M | $12.6M | $70.2M | 9.7% |
| 2022-09-30 | $741.2M | $131.8M | $22.9M | $109.0M | 14.7% |
| 2022-12-31 | $700.6M | $128.0M | $16.3M | $111.7M | 15.9% |
| 2023-03-31 | $752.5M | $48.0M | $19.1M | $28.9M | 3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 33.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | 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.
Sequential operating cash flow volatility
Operating cash flow fell substantially from the prior quarter despite higher revenue, compressing free cash flow and margin. The filing indicates revenue growth was supported by increased management fee income, but cash conversion weakened notably.
If operating cash flow does not recover, free cash flow may remain constrained even with higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue grew, but operating cash flow declined significantly from the prior quarter, leading to a much lower free cash flow margin. Capital expenditure was slightly higher than both comparison periods, further dampening cash conversion.
Relative to the preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower, representing a sharp deterioration in cash generation efficiency. Compared with the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin all improved.
Monitor whether operating cash flow can stabilize after the steep sequential decline, as it is the primary driver of free cash flow variability.