Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved significantly compared to the same quarter a year ago, driven by higher revenue and better operating cash flow. However, relative to the previous quarter, free cash flow was lower due to increased capital expenditure and slightly reduced operating cash flow.
- Revenue conversion into cash was strong, with operating cash flow exceeding net income and capital expenditure remaining moderate, resulting in a healthy free cash flow margin.
- Compared to the preceding quarter, free cash flow margin weakened as capital expenditure rose. Versus the same quarter last year, both free cash flow and margin improved substantially, supported by higher revenue and operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$376.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$100.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$125.4M
Cash generated by operations before capital spending.
CapEx
$24.6M
Capital spending and related asset purchases.
FCF margin
7.8%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $1.3B | $125.4M | $24.6M | $100.8M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 145.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$87.3M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Higher Revenue Driving Cash Flow
Revenue reached a higher level compared to both the previous quarter and the year-ago quarter, which contributed to improved operating cash flow and free cash flow margins.
The increase in revenue provided a strong foundation for cash generation, enabling higher free cash flow despite a rise in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into cash was strong, with operating cash flow exceeding net income and capital expenditure remaining moderate, resulting in a healthy free cash flow margin.
Compared to the preceding quarter, free cash flow margin weakened as capital expenditure rose. Versus the same quarter last year, both free cash flow and margin improved substantially, supported by higher revenue and operating cash flow.
Capital expenditure increased notably from both the prior quarter and the year-ago quarter, warranting attention for its impact on future free cash flow generation.