Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow decreased from the prior quarter but increased compared to the same quarter last year. The free cash flow margin, while still elevated, also declined sequentially but improved year over year.
- Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure rose from the prior quarter but fell from the year-ago quarter. As a result, free cash flow and its margin weakened sequentially but strengthened compared to the same period last year.
- Compared to the prior quarter, revenue increased, operating cash flow decreased, capital expenditure increased, and free cash flow and margin decreased. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and margin all increased, while capital expenditure decreased.
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
$293.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$364.5M
Cash generated by operations before capital spending.
CapEx
$71.0M
Capital spending and related asset purchases.
FCF margin
966.2%
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 | $21.4M | $281.6M | $13.1M | $268.5M | 1255.8% |
| 2023-06-30 | $22.2M | $347.9M | $32.9M | $315.0M | 1418.5% |
| 2023-09-30 | $28.0M | $408.4M | $18.6M | $389.9M | 1391.4% |
| 2023-12-31 | $30.4M | $364.5M | $71.0M | $293.5M | 966.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 135.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 233.7% | 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.
Capital Expenditure Increase
Free cash flow declined from the prior quarter largely due to a notable rise in capital expenditure, which outweighed the revenue growth. Operating cash flow also saw a slight decrease.
If capital expenditure remains at elevated levels, free cash flow may continue to face pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher than both the prior quarter and the year-ago quarter. Operating cash flow was lower than the prior quarter but higher than the year-ago quarter. Capital expenditure rose from the prior quarter but fell from the year-ago quarter. As a result, free cash flow and its margin weakened sequentially but strengthened compared to the same period last year.
Compared to the prior quarter, revenue increased, operating cash flow decreased, capital expenditure increased, and free cash flow and margin decreased. Compared to the same quarter last year, revenue, operating cash flow, free cash flow, and margin all increased, while capital expenditure decreased.
Monitor the level of capital expenditure, as it increased from the prior quarter and is a key determinant of free cash flow.