Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned strongly positive from a deficit a year ago, and improved substantially compared to the prior quarter. The cash conversion was lifted entirely by a sharp recovery in operating cash flow.
- Revenue was stable year over year, while operating cash flow swung from negative to positive, driving free cash flow and its margin higher. Relative to the prior quarter, operating cash flow and free cash flow both increased, with capital expenditure slightly lower.
- Versus the same quarter last year, operating cash flow and free cash flow improved from negative to positive, and the free cash flow margin turned positive. Sequentially, free cash flow was significantly higher, aided by stronger operating cash flow and reduced capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$206.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$116.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$140.1M
Cash generated by operations before capital spending.
CapEx
$23.8M
Capital spending and related asset purchases.
FCF margin
10.9%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.0B | $100.9M | $21.4M | $79.5M | 7.6% |
| 2023-03-31 | $887.9M | -$18.6M | $24.0M | -$42.5M | -4.8% |
| 2023-06-30 | $1.0B | $83.1M | $29.9M | $53.2M | 5.3% |
| 2023-09-30 | $1.1B | $140.1M | $23.8M | $116.3M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 192.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.3B | 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 Recovery
Operating cash flow turned sharply positive from a negative figure one year ago and rose sequentially, indicating a strong rebound in cash generation from core operations.
This recovery was the primary factor behind the swing to positive free cash flow and the improvement in free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable year over year, while operating cash flow swung from negative to positive, driving free cash flow and its margin higher. Relative to the prior quarter, operating cash flow and free cash flow both increased, with capital expenditure slightly lower.
Versus the same quarter last year, operating cash flow and free cash flow improved from negative to positive, and the free cash flow margin turned positive. Sequentially, free cash flow was significantly higher, aided by stronger operating cash flow and reduced capital expenditure.
Monitor the sustainability of the recent operating cash flow improvement, as it was the sole driver of the free cash flow swing.