Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow improved sharply from the prior quarter but were lower than the year-ago period, resulting in a free cash flow margin that was higher sequentially but lower year over year.
- Operating cash flow as a percentage of revenue was higher than the prior quarter, reflecting a stronger conversion of revenue into cash. Capital expenditure was higher than both comparison periods, but the increase in operating cash flow more than offset it, leading to a free cash flow margin that improved sequentially.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, while capital expenditure also increased. Compared to the same quarter one year earlier, operating cash flow and free cash flow were lower, and capital expenditure was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$342.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$162.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$174.5M
Cash generated by operations before capital spending.
CapEx
$11.9M
Capital spending and related asset purchases.
FCF margin
30.4%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $529.2M | $136.8M | $7.7M | $129.1M | 24.4% |
| 2022-12-31 | $505.3M | $53.9M | $9.6M | $44.2M | 8.8% |
| 2023-03-31 | $508.6M | $16.3M | $9.9M | $6.5M | 1.3% |
| 2023-06-30 | $534.6M | $174.5M | $11.9M | $162.6M | 30.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 166.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$262.8M | 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 Increase
Operating cash flow was higher than the prior quarter, which led to a higher free cash flow and margin.
The increase in operating cash flow was the strongest contributor to the sequential improvement in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher than the prior quarter, reflecting a stronger conversion of revenue into cash. Capital expenditure was higher than both comparison periods, but the increase in operating cash flow more than offset it, leading to a free cash flow margin that improved sequentially.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were substantially higher, while capital expenditure also increased. Compared to the same quarter one year earlier, operating cash flow and free cash flow were lower, and capital expenditure was higher.
Monitor the impact of cash taxes paid on operating cash flow, as the filing notes that higher cash taxes due to tax law changes affected annual operating cash flow.