Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved markedly compared to both the preceding quarter and the same quarter last year. Operating cash flow was robust, while capital spending was lower relative to both periods.
- The cash conversion rate, as measured by free cash flow margin, strengthened considerably from the prior quarter and the year-ago period. Revenue was slightly lower sequentially but higher year over year, and operating cash flow outpaced revenue growth.
- Compared to the prior quarter, free cash flow and margin rose sharply as operating cash flow increased substantially while capital expenditure decreased. Versus the same quarter last year, free cash flow also increased significantly, supported by higher revenue and improved operating cash flow generation.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$317.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$210.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$218.8M
Cash generated by operations before capital spending.
CapEx
$8.9M
Capital spending and related asset purchases.
FCF margin
46.5%
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 | $461.0M | $105.2M | $11.8M | $93.4M | 20.3% |
| 2022-09-30 | $495.4M | -$18.2M | $7.3M | -$25.5M | -5.1% |
| 2022-12-31 | $460.0M | $52.2M | $12.8M | $39.4M | 8.6% |
| 2023-03-31 | $451.1M | $218.8M | $8.9M | $210.0M | 46.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 191.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | 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.
Strong Operating Cash Flow
Operating cash flow was the primary driver, increasing substantially from the prior quarter and the year-ago period, leading to a significant rise in free cash flow. The filing indicates that the company's cash and short-term investments grew during the period, consistent with this cash generation.
The improvement in cash generation bolstered the company's liquidity position as reflected in higher cash and short-term investments.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The cash conversion rate, as measured by free cash flow margin, strengthened considerably from the prior quarter and the year-ago period. Revenue was slightly lower sequentially but higher year over year, and operating cash flow outpaced revenue growth.
Compared to the prior quarter, free cash flow and margin rose sharply as operating cash flow increased substantially while capital expenditure decreased. Versus the same quarter last year, free cash flow also increased significantly, supported by higher revenue and improved operating cash flow generation.
Monitor the sustainability of operating cash flow levels, which were the primary contributor to the period's free cash flow improvement.