Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was higher year-over-year but lower sequentially. Operating cash flow and free cash flow margins improved sharply from the prior quarter and remained strong versus the same quarter last year.
- The company converted a lower sequential revenue into significantly higher operating cash flow, resulting in a greatly improved free cash flow margin. Capital expenditure remained very low, contributing to the high conversion.
- Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved margin. Versus the same quarter last year, revenue was higher and free cash flow margin was stable.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$464.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$163.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$164.0M
Cash generated by operations before capital spending.
CapEx
$1.1M
Capital spending and related asset purchases.
FCF margin
41.8%
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 | $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% |
| 2023-09-30 | $389.7M | $164.0M | $1.1M | $163.0M | 41.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 160.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.3% | 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.
Cash flow conversion strength
Operating cash flow rose sharply despite a sequential revenue decline, driving a notable improvement in free cash flow margin. The minimal capital expenditure further supported cash generation.
This strong cash conversion enhances the company's financial flexibility.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a lower sequential revenue into significantly higher operating cash flow, resulting in a greatly improved free cash flow margin. Capital expenditure remained very low, contributing to the high conversion.
Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved margin. Versus the same quarter last year, revenue was higher and free cash flow margin was stable.
Monitor the direction of revenue in the coming quarters given the sequential decline.