Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved notably compared to both the prior quarter and the same quarter last year, with a higher margin. Operating cash flow was the primary driver of this improvement.
- Revenue was stable versus the prior quarter, while operating cash flow strengthened, leading to improved free cash flow and margin. Year over year, revenue increased and operating cash flow rose substantially, resulting in a much higher free cash flow margin.
- Compared to the prior quarter, free cash flow and margin improved despite slightly lower revenue, driven by higher operating cash flow. Versus the same quarter last year, revenue, operating cash flow, and free cash flow all increased, with a significantly higher free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$570.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$150.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$165.1M
Cash generated by operations before capital spending.
CapEx
$15.0M
Capital spending and related asset purchases.
FCF margin
21.4%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $702.6M | $165.1M | $15.0M | $150.0M | 21.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 168.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.1% | 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.
Strong Operating Cash Flow
Operating cash flow rose significantly both quarter over quarter and year over year, providing the primary lift to free cash flow and margin.
This improvement allowed free cash flow and margin to increase without requiring a proportional rise in revenue.
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, while operating cash flow strengthened, leading to improved free cash flow and margin. Year over year, revenue increased and operating cash flow rose substantially, resulting in a much higher free cash flow margin.
Compared to the prior quarter, free cash flow and margin improved despite slightly lower revenue, driven by higher operating cash flow. Versus the same quarter last year, revenue, operating cash flow, and free cash flow all increased, with a significantly higher free cash flow margin.
Capital expenditure increased sequentially, which could affect future free cash flow generation if it continues to rise.