Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow and its margin improved from the same quarter last year but weakened compared to the prior quarter. Revenue followed a similar pattern of year-over-year growth and sequential decline.
- Operating cash flow substantially exceeded capital expenditure, resulting in a free cash flow margin that was higher than a year ago but lower than the previous quarter.
- Compared to the immediately preceding quarter, free cash flow and its margin weakened. Compared to the same quarter one year earlier, free cash flow and its margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$493.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$120.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$122.1M
Cash generated by operations before capital spending.
CapEx
$1.4M
Capital spending and related asset purchases.
FCF margin
31.6%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $382.1M | $122.1M | $1.4M | $120.8M | 31.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 99.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year free cash flow growth
Free cash flow and its margin increased from the year-ago quarter, with operating cash flow also higher. Capital expenditure remained very low, supporting cash conversion.
The year-over-year improvement in free cash flow and margin signals stronger cash generation compared to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow substantially exceeded capital expenditure, resulting in a free cash flow margin that was higher than a year ago but lower than the previous quarter.
Compared to the immediately preceding quarter, free cash flow and its margin weakened. Compared to the same quarter one year earlier, free cash flow and its margin improved.
Monitor the sequential decline in operating cash flow and its effect on maintaining free cash flow levels.