Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow declined sharply in the current quarter as operating cash flow fell while capital expenditure increased, despite higher revenue. The free cash flow margin narrowed significantly compared to both the preceding quarter and the same quarter a year earlier.
- Revenue was higher than the prior quarter and the year-ago quarter, but operating cash flow decreased, leading to a lower free cash flow after higher capital expenditure. The resulting free cash flow margin weakened meaningfully.
- Compared with the preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were also lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$642.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$48.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$136.6M
Cash generated by operations before capital spending.
CapEx
$88.3M
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $1.3B | $136.6M | $88.3M | $48.3M | 3.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 13.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 7.0% | 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.
Weakening cash conversion
The strongest observable driver was the decline in operating cash flow relative to revenue, which reversed the strong cash conversion seen in the prior quarter. Capital expenditure also rose, further pressuring free cash flow.
The free cash flow margin fell to a level well below both the prior quarter and the year-ago quarter, indicating a notable shift in cash generation efficiency.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than the prior quarter and the year-ago quarter, but operating cash flow decreased, leading to a lower free cash flow after higher capital expenditure. The resulting free cash flow margin weakened meaningfully.
Compared with the preceding quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue was higher while operating cash flow, free cash flow, and margin were also lower.
Capital expenditure increased notably in the current quarter, and the company's liquidity sources include credit facilities with remaining tax installment payments to monitor.