Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and cash flows improved compared to the same quarter last year, but declined from the prior quarter, resulting in a lower free cash flow margin. Cash conversion weakened sequentially despite a stable revenue base.
- Revenue was slightly higher than the prior quarter, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was lower, yet the decline in operating cash flow drove the reduction in free cash flow.
- Compared to the prior quarter, free cash flow and its margin were lower, while revenue was stable. From the same quarter a year ago, all cash flow metrics improved, though the free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$482.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$130.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$140.9M
Cash generated by operations before capital spending.
CapEx
$10.7M
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $674.5M | $71.4M | $9.3M | $62.1M | 9.2% |
| 2022-09-30 | $700.0M | $154.4M | $8.5M | $145.8M | 20.8% |
| 2022-12-31 | $700.4M | $157.6M | $13.1M | $144.5M | 20.6% |
| 2023-03-31 | $703.2M | $140.9M | $10.7M | $130.2M | 18.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 159.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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.
Year-over-year cash generation improvement
Operating cash flow and free cash flow both increased compared to the same quarter one year earlier, alongside higher revenue and despite higher capital expenditure. The sequential decline was moderate and did not reverse the annual gain.
The year-over-year improvement in cash flows strengthens the company's ability to fund operations and strategic initiatives.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter, but operating cash flow decreased, leading to a lower free cash flow margin. Capital expenditure was lower, yet the decline in operating cash flow drove the reduction in free cash flow.
Compared to the prior quarter, free cash flow and its margin were lower, while revenue was stable. From the same quarter a year ago, all cash flow metrics improved, though the free cash flow margin was slightly lower.
Monitor the trend of operating cash flow, which declined sequentially, and the company's cash usage for debt repayment and share repurchase as described in the filing.