Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved sequentially and year-over-year. The free cash flow margin strengthened notably from the prior quarter.
- Operating cash flow grew relative to revenue, supporting higher free cash flow conversion. Capital expenditure was stable compared with the previous quarter but higher than a year ago.
- Compared with the preceding quarter, free cash flow and its margin improved. Year-over-year, free cash flow also strengthened while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$548.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$147.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$164.7M
Cash generated by operations before capital spending.
CapEx
$17.5M
Capital spending and related asset purchases.
FCF margin
28.6%
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 |
|---|---|---|---|---|---|
| 2022-05-31 | $488.8M | $192.0M | $15.4M | $176.6M | 36.1% |
| 2022-08-31 | $499.3M | $151.4M | $15.2M | $136.1M | 27.3% |
| 2022-11-30 | $504.8M | $106.6M | $18.0M | $88.7M | 17.6% |
| 2023-02-28 | $515.1M | $164.7M | $17.5M | $147.2M | 28.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Free Cash Flow Margin Expansion
The free cash flow margin improved both sequentially and year-over-year, driven by stronger operating cash flow relative to revenue.
A higher margin indicates more efficient cash generation from revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow grew relative to revenue, supporting higher free cash flow conversion. Capital expenditure was stable compared with the previous quarter but higher than a year ago.
Compared with the preceding quarter, free cash flow and its margin improved. Year-over-year, free cash flow also strengthened while revenue was higher.
Monitor capital expenditure levels relative to the year-ago period as they increased.