Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow increased compared to the prior quarter and the same quarter last year. The free cash flow margin improved relative to a year ago but declined from the immediately preceding quarter.
- Operating cash flow, after deducting capital expenditure, yielded free cash flow, resulting in a free cash flow margin based on revenue. The conversion from revenue to free cash flow was affected by the relationship between operating cash flow and capital spending.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, causing a weakened free cash flow margin. Relative to the same quarter one year earlier, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$547.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$121.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$147.9M
Cash generated by operations before capital spending.
CapEx
$26.6M
Capital spending and related asset purchases.
FCF margin
14.3%
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 | $796.1M | $112.3M | $15.6M | $96.7M | 12.1% |
| 2022-09-30 | $824.0M | $198.1M | $16.3M | $181.8M | 22.1% |
| 2022-12-31 | $810.7M | $167.3M | $20.0M | $147.3M | 18.2% |
| 2023-03-31 | $845.4M | $147.9M | $26.6M | $121.3M | 14.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 86.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$968.8M | 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 vs. Revenue
Revenue rose from both the prior quarter and the year-ago quarter, yet operating cash flow decreased sequentially while improving year-over-year. This divergence between revenue and cash generation is the most observable trend in the data.
The sequential decline in operating cash flow, despite higher revenue, constrained the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow, after deducting capital expenditure, yielded free cash flow, resulting in a free cash flow margin based on revenue. The conversion from revenue to free cash flow was affected by the relationship between operating cash flow and capital spending.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, causing a weakened free cash flow margin. Relative to the same quarter one year earlier, all metrics—revenue, operating cash flow, capital expenditure, free cash flow, and margin—were higher.
Monitor the movement of operating cash flow relative to revenue, as it declined sequentially despite higher revenue.