Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin weakened sequentially but improved from a year ago. Operating cash flow was the primary driver of free cash flow generation.
- Revenue was stable versus the prior quarter and higher than the same quarter last year. Operating cash flow decreased from the prior quarter but increased from a year ago, while capital expenditure was lower than both comparison periods, resulting in free cash flow that was lower sequentially but higher year-over-year. The free cash flow margin followed a similar pattern.
- Compared to the prior quarter, free cash flow and its margin were lower, driven by a decrease in operating cash flow. Compared to the same quarter last year, free cash flow and its margin were higher, supported by stronger operating cash flow and lower capital expenditure.
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
$317.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$354.0M
Cash generated by operations before capital spending.
CapEx
$36.3M
Capital spending and related asset purchases.
FCF margin
18.1%
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 | $1.9B | $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% |
| 2023-12-31 | $1.8B | $354.0M | $36.3M | $317.7M | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$38.7M | 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 year-over-year, which directly supported the improvement in free cash flow compared to the same quarter last year. This was the strongest observable driver of the year-over-year increase.
The year-over-year increase in operating cash flow was the primary factor behind the higher free cash flow and margin versus the prior year quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable versus the prior quarter and higher than the same quarter last year. Operating cash flow decreased from the prior quarter but increased from a year ago, while capital expenditure was lower than both comparison periods, resulting in free cash flow that was lower sequentially but higher year-over-year. The free cash flow margin followed a similar pattern.
Compared to the prior quarter, free cash flow and its margin were lower, driven by a decrease in operating cash flow. Compared to the same quarter last year, free cash flow and its margin were higher, supported by stronger operating cash flow and lower capital expenditure.
Monitor the trend in operating cash flow, as its sequential decline was the main factor behind the quarter's lower free cash flow.