Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue, operating cash flow, and free cash flow all improved compared to both the prior quarter and the same quarter last year. The free cash flow margin turned positive from a negative position in the prior quarter and was higher than the year-ago level.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, supporting a positive free cash flow margin. Capital expenditure increased from the prior quarter but was similar to the year-ago level, allowing free cash flow to grow alongside revenue.
- Compared to the prior quarter, revenue was higher, operating cash flow improved substantially, and free cash flow turned from negative to positive. Versus the same quarter last year, all metrics were higher, with free cash flow margin showing a clear improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$30.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$28.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$44.0M
Cash generated by operations before capital spending.
CapEx
$15.7M
Capital spending and related asset purchases.
FCF margin
7.1%
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 | $340.8M | $56.7M | $31.1M | $25.6M | 7.5% |
| 2022-12-31 | $369.7M | $50.7M | $64.4M | -$13.7M | -3.7% |
| 2023-03-31 | $358.1M | $500000 | $10.5M | -$10.0M | -2.8% |
| 2023-06-30 | $396.5M | $44.0M | $15.7M | $28.3M | 7.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 103.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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 Improvement
Operating cash flow rose sharply from the prior quarter and was higher than the year-ago quarter, driving the positive free cash flow. This was the strongest observable factor in the cash conversion improvement.
The higher operating cash flow was the primary reason free cash flow turned positive and the margin improved.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, supporting a positive free cash flow margin. Capital expenditure increased from the prior quarter but was similar to the year-ago level, allowing free cash flow to grow alongside revenue.
Compared to the prior quarter, revenue was higher, operating cash flow improved substantially, and free cash flow turned from negative to positive. Versus the same quarter last year, all metrics were higher, with free cash flow margin showing a clear improvement.
Monitor the trend in capital expenditure relative to operating cash flow, as it increased from the prior quarter and may affect future free cash flow conversion.