Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year, but free cash flow and margin declined sequentially and year-over-year. Operating cash flow was lower than both comparison periods, despite revenue growth.
- Cash conversion weakened as operating cash flow did not keep pace with revenue expansion. The free cash flow margin contracted from the prior quarter and the same quarter a year ago, driven by lower operating cash flow relative to revenue.
- Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, with capital expenditure slightly higher. Relative to the year-ago quarter, revenue was higher while operating cash flow, free cash flow, and margin all were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$439.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$88.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$89.8M
Cash generated by operations before capital spending.
CapEx
$1.5M
Capital spending and related asset purchases.
FCF margin
23.2%
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 | $349.0M | $117.1M | $1.9M | $115.2M | 33.0% |
| 2022-09-30 | $348.7M | $144.8M | $797000 | $144.0M | 41.3% |
| 2022-12-31 | $344.9M | $92.4M | $850000 | $91.6M | 26.6% |
| 2023-03-31 | $380.3M | $89.8M | $1.5M | $88.3M | 23.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.7B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Revenue growth outpaced cash flow
Revenue increased sequentially and year-over-year, yet operating cash flow declined. This divergence suggests a shift in cash conversion efficiency that requires monitoring.
If operating cash flow does not recover, free cash flow could remain under pressure despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Cash conversion weakened as operating cash flow did not keep pace with revenue expansion. The free cash flow margin contracted from the prior quarter and the same quarter a year ago, driven by lower operating cash flow relative to revenue.
Compared to the preceding quarter, revenue was higher but operating cash flow and free cash flow were lower, with capital expenditure slightly higher. Relative to the year-ago quarter, revenue was higher while operating cash flow, free cash flow, and margin all were lower.
Monitor whether operating cash flow can improve in line with revenue growth in upcoming quarters.