Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially and year over year, driven by higher operating cash flow. Revenue remained stable while the free cash flow margin strengthened.
- Operating cash flow increased relative to both the prior quarter and the same quarter a year earlier, while capital expenditure rose only modestly sequentially and was higher year over year. This combination yielded higher free cash flow and an improved free cash flow margin.
- Revenue was slightly higher sequentially and compared to the same quarter a year ago. Operating cash flow and free cash flow were higher than in both the prior quarter and the year ago period. Capital expenditure was higher year over year but similar to the previous quarter.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$599.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$174.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$189.8M
Cash generated by operations before capital spending.
CapEx
$15.4M
Capital spending and related asset purchases.
FCF margin
24.7%
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 | $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% |
| 2023-09-30 | $707.0M | $189.8M | $15.4M | $174.4M | 24.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 114.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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.
Operating cash flow growth
Operating cash flow increased compared to both the prior quarter and the year ago quarter, outpacing the modest revenue rise. This was the primary factor supporting the free cash flow improvement.
Stronger operating cash generation contributed directly to higher free cash flow and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased relative to both the prior quarter and the same quarter a year earlier, while capital expenditure rose only modestly sequentially and was higher year over year. This combination yielded higher free cash flow and an improved free cash flow margin.
Revenue was slightly higher sequentially and compared to the same quarter a year ago. Operating cash flow and free cash flow were higher than in both the prior quarter and the year ago period. Capital expenditure was higher year over year but similar to the previous quarter.
Monitor the level of cash and investments, which decreased during the fiscal year due to debt repayment and share repurchases.