Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue remained stable compared to the prior quarter, while free cash flow improved due to higher operating cash flow and slightly lower capital expenditure. Year-over-year revenue and free cash flow were lower across all measures.
- Revenue was unchanged from the previous quarter, but operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure was slightly reduced, further supporting the improvement in cash conversion.
- Compared to the prior quarter, free cash flow margin improved from 6.6% to 8.3%. Relative to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all lower, with the margin also declining from 15.0% to 8.3%.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.3B
Trailing twelve-month free cash flow.
Quarter free cash flow
$182.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$190.0M
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
8.3%
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 | $3.4B | $486.7M | $18.3M | $468.4M | 13.6% |
| 2023-03-31 | $2.6B | $546.4M | $10.1M | $536.3M | 20.7% |
| 2023-06-30 | $2.2B | $158.4M | $10.5M | $148.0M | 6.6% |
| 2023-09-30 | $2.2B | $190.0M | $8.0M | $182.0M | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 106.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | 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 despite flat revenue
Operating cash flow rose meaningfully from the prior quarter even as revenue held steady. This improvement was the strongest observable driver of the quarter's better free cash flow and margin.
The higher operating cash flow directly lifted free cash flow and the free cash flow margin compared to the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was unchanged from the previous quarter, but operating cash flow increased, leading to a higher free cash flow margin. Capital expenditure was slightly reduced, further supporting the improvement in cash conversion.
Compared to the prior quarter, free cash flow margin improved from 6.6% to 8.3%. Relative to the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all lower, with the margin also declining from 15.0% to 8.3%.
Monitor whether operating cash flow can sustain its sequential improvement without a corresponding increase in revenue.