Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved versus both the prior quarter and the same quarter last year, supported by higher revenue and operating cash flow. The free cash flow margin widened sequentially and year over year.
- Revenue increased from the prior quarter and from the same quarter one year earlier. Operating cash flow rose more than proportionally, leading to higher free cash flow after capital expenditure, and the free cash flow margin strengthened.
- Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower, contributing to a stronger free cash flow margin. Versus the same quarter one year earlier, all metrics were higher with operating cash flow showing the largest relative improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$455.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$144.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$183.9M
Cash generated by operations before capital spending.
CapEx
$39.5M
Capital spending and related asset purchases.
FCF margin
16.0%
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 | $860.5M | $65.8M | $30.1M | $35.8M | 4.2% |
| 2022-09-30 | $841.7M | $189.0M | $37.7M | $151.3M | 18.0% |
| 2022-12-31 | $828.6M | $173.4M | $49.2M | $124.2M | 15.0% |
| 2023-03-31 | $900.2M | $183.9M | $39.5M | $144.4M | 16.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$660.0M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Strengthened Cash Generation
Operating cash flow improved compared with both the prior quarter and the year-ago quarter, while capital expenditure was lower sequentially. This combination drove free cash flow higher and widened the free cash flow margin.
The strongest observable driver is the increase in operating cash flow relative to revenue, which directly lifted free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased from the prior quarter and from the same quarter one year earlier. Operating cash flow rose more than proportionally, leading to higher free cash flow after capital expenditure, and the free cash flow margin strengthened.
Compared with the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, while capital expenditure was lower, contributing to a stronger free cash flow margin. Versus the same quarter one year earlier, all metrics were higher with operating cash flow showing the largest relative improvement.
Monitor the trend in working capital, as the filing notes that working capital shifted from negative to positive primarily due to lower credit facility borrowings.