Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased relative to both the prior quarter and the same quarter last year, while free cash flow and free cash flow margin weakened sequentially but improved compared to the year-ago period.
- Operating cash flow declined from the prior quarter, resulting in lower free cash flow despite slightly reduced capital expenditure. Compared to the same quarter last year, operating cash flow and free cash flow both improved.
- Against the prior quarter, the free cash flow margin weakened significantly as operating cash flow fell while revenue stayed relatively stable. Versus the same quarter a year earlier, the free cash flow margin was higher, supported by stronger operating cash flow.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$375.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$86.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$90.2M
Cash generated by operations before capital spending.
CapEx
$3.9M
Capital spending and related asset purchases.
FCF margin
16.2%
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 | $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% |
| 2023-06-30 | $533.3M | $90.2M | $3.9M | $86.3M | 16.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 306.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | 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.
Sequential Drop in Operating Cash Flow
Operating cash flow decreased from the prior quarter by a notable amount, while revenue was only slightly higher, causing free cash flow and margin to weaken.
This sequential weakening in cash conversion is the most significant observable change for the quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow declined from the prior quarter, resulting in lower free cash flow despite slightly reduced capital expenditure. Compared to the same quarter last year, operating cash flow and free cash flow both improved.
Against the prior quarter, the free cash flow margin weakened significantly as operating cash flow fell while revenue stayed relatively stable. Versus the same quarter a year earlier, the free cash flow margin was higher, supported by stronger operating cash flow.
Monitor whether the sequential decline in operating cash flow reverses in future periods.