Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved compared to both the prior quarter and the same quarter last year, driven by higher operating cash flow. The free cash flow margin also strengthened over both periods.
- Revenue increased, and operating cash flow grew more than proportionally, leading to higher free cash flow after capital expenditure. The free cash flow margin rose as a result.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, all metrics were also higher, with operating cash flow and free cash flow showing notable improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$64.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$21.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$29.2M
Cash generated by operations before capital spending.
CapEx
$7.4M
Capital spending and related asset purchases.
FCF margin
13.1%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $162.6M | $11.0M | $5.5M | $5.6M | 3.4% |
| 2022-09-30 | $155.3M | $27.3M | $6.1M | $21.2M | 13.7% |
| 2022-12-31 | $146.6M | $21.8M | $5.7M | $16.2M | 11.0% |
| 2023-03-31 | $165.9M | $29.2M | $7.4M | $21.8M | 13.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -923.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | 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 Growth
Operating cash flow was the strongest observable driver, rising substantially from both the prior quarter and the year-ago quarter, directly boosting free cash flow.
Higher operating cash flow was the primary factor behind the improved free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased, and operating cash flow grew more than proportionally, leading to higher free cash flow after capital expenditure. The free cash flow margin rose as a result.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, all metrics were also higher, with operating cash flow and free cash flow showing notable improvement.
Monitor capital expenditure levels, as they increased sequentially and year-over-year, which could affect future free cash flow.