Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow margin improved significantly compared to a year ago, driven by a much higher operating cash flow relative to revenue.
- Operating cash flow as a percentage of revenue was higher than both the prior quarter and the same quarter last year, indicating improved cash conversion. Capital expenditure was lower than the prior quarter, contributing to a free cash flow margin that remained stable sequentially and improved markedly year-over-year.
- Compared to the prior quarter, revenue and operating cash flow were lower, but free cash flow margin was nearly stable. Versus the same quarter last year, revenue was slightly higher, while operating cash flow and free cash flow margin were substantially higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$580.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$139.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$153.3M
Cash generated by operations before capital spending.
CapEx
$13.8M
Capital spending and related asset purchases.
FCF margin
30.7%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $454.0M | $153.3M | $13.8M | $139.5M | 30.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 144.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.0% | 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.
Operating Cash Flow Strength
Operating cash flow was substantially higher than the same quarter last year, despite only a modest increase in revenue. This was the strongest observable driver of the improved free cash flow margin.
The higher operating cash flow directly lifted free cash flow and margin compared to the year-ago period.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was higher than both the prior quarter and the same quarter last year, indicating improved cash conversion. Capital expenditure was lower than the prior quarter, contributing to a free cash flow margin that remained stable sequentially and improved markedly year-over-year.
Compared to the prior quarter, revenue and operating cash flow were lower, but free cash flow margin was nearly stable. Versus the same quarter last year, revenue was slightly higher, while operating cash flow and free cash flow margin were substantially higher.
Monitor whether operating cash flow can sustain its elevated level relative to revenue in future quarters.