Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved substantially this quarter, driven by a strong increase in operating cash flow that more than offset higher capital spending. Revenue grew sequentially, and cash conversion strengthened significantly versus both the prior quarter and the same period last year.
- Revenue increased and operating cash flow rose markedly, enabling free cash flow to turn positive after a negative year-ago result. The free cash flow margin shifted from negative and low levels to positive, reflecting improved cash generation from each dollar of revenue.
- Compared with the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the margin expanded. Relative to the same quarter a year earlier, revenue was lower but operating cash flow and free cash flow improved from negative to positive, resulting in a much stronger margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$480.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$148.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$175.9M
Cash generated by operations before capital spending.
CapEx
$27.1M
Capital spending and related asset purchases.
FCF margin
31.3%
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 | $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% |
| 2023-09-30 | $474.9M | $175.9M | $27.1M | $148.8M | 31.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 122.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.7% | 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.
Stronger Operating Cash Flow
Operating cash flow increased substantially from the prior quarter and turned positive after being negative a year ago. This improvement was the primary factor behind the free cash flow recovery, even as capital spending rose.
Higher operating cash flow supported both increased capital investment and a material rise in free cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased and operating cash flow rose markedly, enabling free cash flow to turn positive after a negative year-ago result. The free cash flow margin shifted from negative and low levels to positive, reflecting improved cash generation from each dollar of revenue.
Compared with the prior quarter, revenue, operating cash flow, and free cash flow all increased, and the margin expanded. Relative to the same quarter a year earlier, revenue was lower but operating cash flow and free cash flow improved from negative to positive, resulting in a much stronger margin.
Monitor capital expenditure, which rose noticeably compared with both the prior quarter and the year-ago period.