Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both declined sequentially, while capital expenditure was relatively stable. Free cash flow margin weakened notably from the prior quarter but remained above the year-ago level.
- Revenue was slightly lower than the previous quarter, and operating cash flow declined to a larger degree, resulting in a lower free cash flow margin. Compared with the same quarter last year, free cash flow margin improved as operating cash flow increased slightly and capital expenditure grew at a slower pace.
- Compared with the immediately preceding quarter, revenue was marginally lower, and free cash flow was substantially lower, with the margin weakening from the prior quarter. Versus the same quarter one year earlier, revenue was higher and free cash flow was slightly lower, but the margin was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$94.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$19.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$27.4M
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
11.6%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $146.6M | $21.8M | $5.7M | $16.2M | 11.0% |
| 2023-03-31 | $165.9M | $29.2M | $7.4M | $21.8M | 13.1% |
| 2023-06-30 | $168.9M | $45.2M | $7.8M | $37.4M | 22.1% |
| 2023-09-30 | $167.3M | $27.4M | $8.0M | $19.4M | 11.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 258.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.8% | 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 change
Operating cash flow fell significantly from the prior quarter, while revenue was only slightly lower. This divergence was the strongest observable factor behind the weakened free cash flow margin in the current quarter.
The cash conversion rate from revenue to operating cash flow worsened sequentially, directly compressing free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly lower than the previous quarter, and operating cash flow declined to a larger degree, resulting in a lower free cash flow margin. Compared with the same quarter last year, free cash flow margin improved as operating cash flow increased slightly and capital expenditure grew at a slower pace.
Compared with the immediately preceding quarter, revenue was marginally lower, and free cash flow was substantially lower, with the margin weakening from the prior quarter. Versus the same quarter one year earlier, revenue was higher and free cash flow was slightly lower, but the margin was higher.
Monitor operating cash flow trajectory, as it declined both sequentially and year over year relative to revenue.