Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion improved significantly from the prior quarter and the same quarter last year. Operating cash flow drove free cash flow to a positive margin despite lower revenue.
- Revenue was lower than both the immediately preceding quarter and the same quarter one year earlier, but operating cash flow was higher, resulting in higher free cash flow and an improved free cash flow margin.
- Compared to the prior quarter, free cash flow turned from negative to positive, and the margin improved. Compared to the same quarter last year, free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$808.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$356.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$411.5M
Cash generated by operations before capital spending.
CapEx
$55.3M
Capital spending and related asset purchases.
FCF margin
29.4%
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 | $429.9M | $282.8M | $68.9M | $213.9M | 49.8% |
| 2023-03-31 | $1.2B | $314.1M | $61.5M | $252.6M | 20.7% |
| 2023-06-30 | $1.3B | $33.6M | $47.9M | -$14.3M | -1.1% |
| 2023-09-30 | $1.2B | $411.5M | $55.3M | $356.2M | 29.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 92.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Operating Cash Flow Strength
Operating cash flow was higher than both the prior quarter and the same quarter last year, even though revenue was lower. This was the primary factor behind the improved free cash flow.
Strong operating cash flow enabled a higher free cash flow margin and a positive swing from the prior quarter's negative free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than both the immediately preceding quarter and the same quarter one year earlier, but operating cash flow was higher, resulting in higher free cash flow and an improved free cash flow margin.
Compared to the prior quarter, free cash flow turned from negative to positive, and the margin improved. Compared to the same quarter last year, free cash flow and margin were higher.
Monitor revenue trends as they declined from both the prior quarter and the year-ago period.