Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved sharply, leading to a significantly higher free cash flow margin versus both the prior quarter and the same quarter last year. Capital expenditure remained minimal, reinforcing the conversion of revenue into free cash flow.
- Revenue was higher compared to both the prior quarter and the year-ago quarter. Operating cash flow increased substantially, while capital expenditure was lower than the year-ago quarter and roughly stable versus the prior quarter. These trends drove free cash flow and free cash flow margin markedly higher.
- Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, every metric improved, with operating cash flow, free cash flow, and margin showing substantial increases.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$346.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$182.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$187.4M
Cash generated by operations before capital spending.
CapEx
$4.8M
Capital spending and related asset purchases.
FCF margin
34.8%
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 | $473.0M | $62.4M | $5.5M | $57.0M | 12.0% |
| 2022-09-30 | $477.9M | $47.1M | $14.4M | $32.6M | 6.8% |
| 2022-12-31 | $508.6M | $78.8M | $4.9M | $73.8M | 14.5% |
| 2023-03-31 | $525.2M | $187.4M | $4.8M | $182.6M | 34.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 1086.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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 both the prior quarter and the year-ago quarter. This was the primary observable factor behind the improvement in free cash flow and margin.
The higher operating cash flow directly lifted free cash flow and free cash flow margin to levels well above recent history.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was higher compared to both the prior quarter and the year-ago quarter. Operating cash flow increased substantially, while capital expenditure was lower than the year-ago quarter and roughly stable versus the prior quarter. These trends drove free cash flow and free cash flow margin markedly higher.
Compared to the immediately preceding quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher. Compared to the same quarter one year earlier, every metric improved, with operating cash flow, free cash flow, and margin showing substantial increases.
Monitor the level of deferred revenue, which increased compared to the prior quarter-end as disclosed in the balance sheet within the filing.