Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow and free cash flow improved sharply year-over-year, while the free cash flow margin widened notably. Sequentially, cash generation weakened slightly as revenue and operating cash flow edged lower.
- Revenue of the quarter supported operating cash flow of a certain amount, which after subtracting capital expenditure yielded free cash flow. The resulting free cash flow margin reflected the proportion of revenue converted into free cash flow.
- Compared with the preceding quarter, operating cash flow and free cash flow were lower, and the free cash flow margin narrowed. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, and the free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$772.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$217.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$249.9M
Cash generated by operations before capital spending.
CapEx
$32.6M
Capital spending and related asset purchases.
FCF margin
24.1%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $901.6M | $249.9M | $32.6M | $217.3M | 24.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 111.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$244.3M | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Improved year-over-year cash generation
Operating cash flow and free cash flow were both markedly higher compared with the same quarter one year earlier, driving an improvement in the free cash flow margin. This was the most notable observable shift across the comparisons.
The quarter delivered stronger free cash flow than the year-ago period, while capital expenditure was lower.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue of the quarter supported operating cash flow of a certain amount, which after subtracting capital expenditure yielded free cash flow. The resulting free cash flow margin reflected the proportion of revenue converted into free cash flow.
Compared with the preceding quarter, operating cash flow and free cash flow were lower, and the free cash flow margin narrowed. Versus the same quarter one year earlier, operating cash flow and free cash flow were higher, and the free cash flow margin improved.
Capital expenditure is an item to watch, as it was lower than both the prior quarter and the year-ago quarter.