Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin improved in the quarter, supported by strong operating cash flow. Compared with both the preceding quarter and the same quarter a year ago, free cash flow increased.
- Revenue rose while operating cash flow grew at a faster pace, and capital expenditure remained moderate, leading to a higher free cash flow margin.
- Free cash flow and margin improved substantially versus the preceding quarter, and also increased compared with the same quarter a year earlier.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$902.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$272.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$281.6M
Cash generated by operations before capital spending.
CapEx
$9.4M
Capital spending and related asset purchases.
FCF margin
25.4%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.0B | $208.0M | $17.1M | $190.9M | 18.4% |
| 2023-03-31 | $1.0B | $270.3M | $22.8M | $247.5M | 23.9% |
| 2023-06-30 | $1.0B | $198.0M | $5.8M | $192.2M | 18.3% |
| 2023-09-30 | $1.1B | $281.6M | $9.4M | $272.2M | 25.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 208.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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 Growth
Operating cash flow increased both sequentially and year-over-year, serving as the strongest driver behind the improvement in free cash flow and margin.
Higher operating cash flow directly enabled greater free cash flow and a wider margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue rose while operating cash flow grew at a faster pace, and capital expenditure remained moderate, leading to a higher free cash flow margin.
Free cash flow and margin improved substantially versus the preceding quarter, and also increased compared with the same quarter a year earlier.
Capital expenditure, though still low, rose sequentially and may warrant attention for future investment pace.