Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved sequentially and year-over-year, while free cash flow decreased from the prior quarter but remained well above the year-ago level. The free cash flow margin weakened relative to the previous quarter but strengthened significantly compared to the same quarter last year.
- Operating cash flow increased substantially from a year earlier, supporting a strong conversion of revenue into cash. Capital expenditure rose moderately, yet free cash flow remained robust with an improved margin year-over-year.
- Compared to the prior quarter, operating cash flow and free cash flow were lower, while revenue was higher. Year-over-year, all metrics improved—revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$309.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$110.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$126.9M
Cash generated by operations before capital spending.
CapEx
$16.5M
Capital spending and related asset purchases.
FCF margin
9.4%
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 | $1.0B | $44.6M | $11.0M | $33.5M | 3.3% |
| 2022-09-30 | $1.1B | $61.2M | $14.6M | $46.7M | 4.2% |
| 2022-12-31 | $1.1B | $132.0M | $13.6M | $118.4M | 10.6% |
| 2023-03-31 | $1.2B | $126.9M | $16.5M | $110.4M | 9.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 192.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$160.7M | 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
Revenue rose both sequentially and year-over-year, providing the primary observable driver for cash generation. The increase was accompanied by higher operating cash flow compared to the same quarter last year, though the sequential decline in operating cash flow warrants attention.
Higher revenue supported a strong year-over-year improvement in free cash flow and margin, despite a modest sequential softening.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased substantially from a year earlier, supporting a strong conversion of revenue into cash. Capital expenditure rose moderately, yet free cash flow remained robust with an improved margin year-over-year.
Compared to the prior quarter, operating cash flow and free cash flow were lower, while revenue was higher. Year-over-year, all metrics improved—revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased.
Monitor the sustainability of operating cash flow, which declined sequentially despite higher revenue.