Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow increased from the prior quarter, driven by higher operating cash flow and slightly lower capital expenditure. Compared to the same quarter last year, free cash flow also improved despite a decline in margin.
- Revenue conversion into free cash flow strengthened sequentially, as operating cash flow grew faster than revenue, though the margin remained below the year-ago level.
- Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were higher. Versus the year-ago quarter, revenue and free cash flow were higher, but operating cash flow and free cash flow margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$445.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$121.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$122.6M
Cash generated by operations before capital spending.
CapEx
$792000
Capital spending and related asset purchases.
FCF margin
30.6%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $398.7M | $122.6M | $792000 | $121.8M | 30.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 94.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.2% | 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.
Operating Cash Flow Growth
Operating cash flow increased substantially from the prior quarter, driving the improvement in free cash flow. This was the strongest observable driver among the supplied metrics.
Higher operating cash flow directly led to higher free cash flow, enabling stronger cash generation.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into free cash flow strengthened sequentially, as operating cash flow grew faster than revenue, though the margin remained below the year-ago level.
Compared to the prior quarter, all key metrics improved: revenue, operating cash flow, free cash flow, and margin were higher. Versus the year-ago quarter, revenue and free cash flow were higher, but operating cash flow and free cash flow margin were lower.
Monitor the trend of free cash flow margin, as it declined compared to the same quarter last year despite higher revenue.