Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved markedly compared with both the prior quarter and the same quarter last year. The free cash flow margin expanded as operating cash flow increased while capital expenditure remained relatively contained.
- Operating cash flow as a share of revenue rose from the two comparison periods, while capital expenditure was lower than the preceding quarter. Consequently, free cash flow and free cash flow margin both improved.
- Revenue was slightly lower than the prior quarter but stable relative to the year-ago period. Operating cash flow, free cash flow, and free cash flow margin were all higher versus both the immediately preceding quarter and the same quarter one year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.2B
Trailing twelve-month free cash flow.
Quarter free cash flow
$341.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$388.1M
Cash generated by operations before capital spending.
CapEx
$46.9M
Capital spending and related asset purchases.
FCF margin
18.5%
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 | $1.7B | $301.9M | $42.8M | $259.1M | 15.3% |
| 2023-03-31 | $1.9B | $388.5M | $33.7M | $354.8M | 19.1% |
| 2023-06-30 | $1.9B | $302.1M | $55.9M | $246.2M | 13.1% |
| 2023-09-30 | $1.8B | $388.1M | $46.9M | $341.2M | 18.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 115.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $37.5M | 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 Increase
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, consistent with the filing’s observation that working capital shifted from a use to a source of cash.
This increase was the primary factor behind the expansion in free cash flow and the free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue rose from the two comparison periods, while capital expenditure was lower than the preceding quarter. Consequently, free cash flow and free cash flow margin both improved.
Revenue was slightly lower than the prior quarter but stable relative to the year-ago period. Operating cash flow, free cash flow, and free cash flow margin were all higher versus both the immediately preceding quarter and the same quarter one year earlier.
Monitor whether working capital continues to be a source of cash in subsequent quarters, as the filing attributes the current improvement partly to supply chain normalization and slower business activity.