Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved versus the prior quarter, while free cash flow margin remained stable year over year. Capital expenditure increased both sequentially and annually.
- Revenue was consistent across periods. Operating cash flow increased compared to both the previous quarter and the same quarter last year, leading to higher free cash flow. Free cash flow margin improved versus the preceding quarter and was nearly unchanged from one year earlier.
- Compared to the immediately preceding quarter, free cash flow margin strengthened, driven by higher operating cash flow and a moderate increase in capital expenditure. Versus the same quarter one year earlier, free cash flow and its margin were slightly higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$928.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$247.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$270.3M
Cash generated by operations before capital spending.
CapEx
$22.8M
Capital spending and related asset purchases.
FCF margin
23.9%
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 | $250.9M | $17.9M | $233.0M | 22.9% |
| 2022-09-30 | $1.0B | $269.9M | $12.4M | $257.5M | 24.9% |
| 2022-12-31 | $1.0B | $208.0M | $17.1M | $190.9M | 18.4% |
| 2023-03-31 | $1.0B | $270.3M | $22.8M | $247.5M | 23.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 522.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Strength
Operating cash flow reached its highest level among the three quarters presented, supporting a notable sequential gain in free cash flow. This improvement was the primary observable factor behind the margin expansion.
Higher operating cash flow directly boosted free cash flow and margin without requiring an outsized increase in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was consistent across periods. Operating cash flow increased compared to both the previous quarter and the same quarter last year, leading to higher free cash flow. Free cash flow margin improved versus the preceding quarter and was nearly unchanged from one year earlier.
Compared to the immediately preceding quarter, free cash flow margin strengthened, driven by higher operating cash flow and a moderate increase in capital expenditure. Versus the same quarter one year earlier, free cash flow and its margin were slightly higher.
Capital expenditure has increased in consecutive quarters; monitoring its trajectory relative to operating cash flow is advisable.