Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and free cash flow margin improved compared to both the prior quarter and the same quarter last year, supported by higher operating cash flow relative to revenue. Revenue also increased sequentially and year-over-year.
- The company converted a larger share of revenue into operating cash flow compared to the prior quarter and the year-ago quarter, resulting in a higher free cash flow margin after accounting for capital expenditure.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin also improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$355.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$106.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$132.0M
Cash generated by operations before capital spending.
CapEx
$25.9M
Capital spending and related asset purchases.
FCF margin
12.6%
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 | $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% |
| 2023-06-30 | $839.9M | $132.0M | $25.9M | $106.1M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 90.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | 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.
Stronger cash generation
Operating cash flow grew at a faster pace than revenue, leading to a higher free cash flow margin.
The company's ability to generate free cash flow strengthened.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a larger share of revenue into operating cash flow compared to the prior quarter and the year-ago quarter, resulting in a higher free cash flow margin after accounting for capital expenditure.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and the free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, with free cash flow margin also improved.
Monitor capital expenditure, which increased from both the prior quarter and the year-ago quarter.