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 strengthened versus the prior quarter but was slightly lower than the year-ago period.
- Operating cash flow as a proportion of revenue was higher than the prior quarter but lower than the year-ago quarter. Capital expenditure was lower than the year-ago quarter, which supported free cash flow conversion despite the margin being slightly below the year-ago level.
- Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Compared to the same quarter last year, revenue and free cash flow were higher, operating cash flow was stable, capital expenditure was lower, and free cash flow margin was slightly lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$40.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$35.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$56.0M
Cash generated by operations before capital spending.
CapEx
$20.1M
Capital spending and related asset purchases.
FCF margin
8.3%
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 | $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% |
| 2023-09-30 | $432.7M | $56.0M | $20.1M | $35.9M | 8.3% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 69.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.6% | 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.
Revenue Growth Supporting Cash Generation
Revenue increased compared to both the prior quarter and the year-ago quarter, and operating cash flow rose sequentially. The combination of higher revenue and stable operating cash flow conversion led to improved free cash flow.
Free cash flow and free cash flow margin both improved sequentially, reflecting stronger cash generation from operations.
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 the prior quarter but lower than the year-ago quarter. Capital expenditure was lower than the year-ago quarter, which supported free cash flow conversion despite the margin being slightly below the year-ago level.
Compared to the prior quarter, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin all increased. Compared to the same quarter last year, revenue and free cash flow were higher, operating cash flow was stable, capital expenditure was lower, and free cash flow margin was slightly lower.
Monitor the trend in capital expenditure relative to operating cash flow, as a lower capital expenditure level contributed to free cash flow improvement this quarter.