Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sharply versus the prior quarter and the year-ago quarter, driven by a significant increase in operating cash flow. Revenue was stable across all periods, while capital expenditure declined year over year.
- Operating cash flow rose substantially relative to revenue, lifting the free cash flow margin well above both the prior quarter and the year-ago quarter. Capital expenditure remained modest in comparison to operating cash flow.
- Compared with the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow on similar revenue. Versus the same quarter one year earlier, free cash flow and margin also improved, as operating cash flow increased and capital expenditure was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$1.1B
Trailing twelve-month free cash flow.
Quarter free cash flow
$674.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$714.3M
Cash generated by operations before capital spending.
CapEx
$40.3M
Capital spending and related asset purchases.
FCF margin
47.7%
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 | $1.4B | -$98.9M | $38.1M | -$137.0M | -9.7% |
| 2023-06-30 | $1.4B | $331.3M | $46.7M | $284.6M | 19.7% |
| 2023-09-30 | $1.4B | $354.1M | $39.2M | $314.9M | 21.8% |
| 2023-12-31 | $1.4B | $714.3M | $40.3M | $674.0M | 47.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -116.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$20.3M | 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 Surge
Operating cash flow was substantially higher than both the prior quarter and the year-ago quarter, while revenue remained unchanged. This was the strongest observable driver of the improvement in free cash flow.
The increase in operating cash flow directly lifted free cash flow and the free cash flow margin to their highest levels among the three periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow rose substantially relative to revenue, lifting the free cash flow margin well above both the prior quarter and the year-ago quarter. Capital expenditure remained modest in comparison to operating cash flow.
Compared with the immediately preceding quarter, free cash flow and free cash flow margin were higher, driven by stronger operating cash flow on similar revenue. Versus the same quarter one year earlier, free cash flow and margin also improved, as operating cash flow increased and capital expenditure was lower.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future periods.