Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The quarter's free cash flow margin weakened significantly compared to the prior quarter and the same period last year, as operating cash flow declined while revenue rose. The company maintained substantial cash holdings at quarter end and declared a dividend.
- Revenue increased from both the preceding quarter and the year‑ago period, but operating cash flow fell sharply, resulting in a much lower free cash flow and free cash flow margin.
- Both operating cash flow and free cash flow were lower than the immediately preceding quarter and the same quarter one year earlier. Capital expenditure also decreased, but the drop in operating cash flow was the primary factor.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$3.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$105.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$130.0M
Cash generated by operations before capital spending.
CapEx
$25.0M
Capital spending and related asset purchases.
FCF margin
27.9%
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 | $322.0M | $975.0M | $50.0M | $925.0M | 287.3% |
| 2022-09-30 | $345.0M | $846.0M | $42.0M | $804.0M | 233.0% |
| 2022-12-31 | $343.0M | $1.4B | $49.0M | $1.3B | 381.3% |
| 2023-03-31 | $377.0M | $130.0M | $25.0M | $105.0M | 27.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 17.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 6.6% | 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 Decline
Operating cash flow decreased substantially from both comparison periods, leading to a sharp reduction in free cash flow despite higher revenue.
If operating cash flow does not recover, free cash flow may remain under pressure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from both the preceding quarter and the year‑ago period, but operating cash flow fell sharply, resulting in a much lower free cash flow and free cash flow margin.
Both operating cash flow and free cash flow were lower than the immediately preceding quarter and the same quarter one year earlier. Capital expenditure also decreased, but the drop in operating cash flow was the primary factor.
Monitor the trend in operating cash flow relative to revenue, as the gap between revenue growth and cash generation widened.