Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than both the prior quarter and the same quarter last year. Free cash flow and free cash flow margin improved compared to the year-ago quarter but weakened significantly from the preceding quarter.
- Operating cash flow was lower than revenue, resulting in a free cash flow margin that was positive but below the prior quarter's level. Capital expenditure was modest relative to operating cash flow, supporting free cash flow generation.
- Compared to the preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were substantially lower, causing a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$306.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$82.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$90.2M
Cash generated by operations before capital spending.
CapEx
$7.8M
Capital spending and related asset purchases.
FCF margin
18.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-06-30 | $441.1M | $90.2M | $7.8M | $82.4M | 18.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.8% | 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 Volatility
Operating cash flow was significantly lower than the prior quarter, while revenue changed only modestly. This divergence is the strongest observable driver of the quarter's cash conversion performance.
The lower operating cash flow directly reduced free cash flow and the free cash flow margin compared to the preceding quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, resulting in a free cash flow margin that was positive but below the prior quarter's level. Capital expenditure was modest relative to operating cash flow, supporting free cash flow generation.
Compared to the preceding quarter, revenue was slightly lower while operating cash flow and free cash flow were substantially lower, causing a weakened free cash flow margin. Versus the same quarter one year earlier, revenue was lower but operating cash flow and free cash flow were higher, leading to an improved free cash flow margin.
Monitor the trend in operating cash flow, which declined sharply from the prior quarter despite a relatively stable revenue level.