Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow and free cash flow improved compared to both the prior quarter and the same quarter last year, leading to a significantly stronger free cash flow margin.
- Operating cash flow as a proportion of revenue was materially higher than both the preceding quarter and the year-ago quarter, with capital expenditure slightly higher than the prior quarter but lower than a year ago. The resulting free cash flow margin improved substantially versus both comparison periods.
- Compared with the immediately preceding quarter, revenue declined while operating cash flow, free cash flow, and free cash flow margin all increased. Compared with the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$679.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$238.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$272.4M
Cash generated by operations before capital spending.
CapEx
$34.1M
Capital spending and related asset purchases.
FCF margin
26.0%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $828.6M | $173.4M | $49.2M | $124.2M | 15.0% |
| 2023-03-31 | $900.2M | $183.9M | $39.5M | $144.4M | 16.0% |
| 2023-06-30 | $943.6M | $200.3M | $27.5M | $172.8M | 18.3% |
| 2023-09-30 | $915.5M | $272.4M | $34.1M | $238.3M | 26.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 112.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$437.1M | 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 Conversion
Operating cash flow rose sharply against both the prior quarter and the year-ago quarter, while revenue only increased year over year and decreased sequentially. The conversion of revenue into operating cash flow strengthened markedly.
This stronger conversion was the primary factor behind the improvement in free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was materially higher than both the preceding quarter and the year-ago quarter, with capital expenditure slightly higher than the prior quarter but lower than a year ago. The resulting free cash flow margin improved substantially versus both comparison periods.
Compared with the immediately preceding quarter, revenue declined while operating cash flow, free cash flow, and free cash flow margin all increased. Compared with the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased sequentially while revenue declined.