Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly over the prior quarter, driven by higher operating cash flow and lower capital expenditure. Compared to the same quarter last year, free cash flow and revenue were higher, while the free cash flow margin was nearly stable.
- The company generated strong free cash flow relative to revenue, with the free cash flow margin rising sharply from the prior quarter. Operating cash flow increased while capital expenditure declined, enhancing cash conversion.
- Sequentially, revenue decreased but operating cash flow increased substantially, leading to a large increase in free cash flow. Year-over-year, revenue and free cash flow were both higher, with a slightly lower free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$288.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$127.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$148.4M
Cash generated by operations before capital spending.
CapEx
$20.5M
Capital spending and related asset purchases.
FCF margin
15.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-09-30 | $858.9M | $52.8M | $27.1M | $25.7M | 3.0% |
| 2023-12-31 | $817.7M | $148.4M | $20.5M | $127.9M | 15.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.3% | 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.
Operating Cash Flow Growth
Operating cash flow increased substantially compared to the prior quarter, overcoming a decline in revenue. This was the primary driver of the higher free cash flow.
The improvement in operating cash flow significantly boosted free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company generated strong free cash flow relative to revenue, with the free cash flow margin rising sharply from the prior quarter. Operating cash flow increased while capital expenditure declined, enhancing cash conversion.
Sequentially, revenue decreased but operating cash flow increased substantially, leading to a large increase in free cash flow. Year-over-year, revenue and free cash flow were both higher, with a slightly lower free cash flow margin.
Monitor the trajectory of operating cash flow, given the sequential drop in revenue but strong cash generation this quarter.