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 also strengthened over those periods.
- Operating cash flow as a proportion of revenue was higher than in the preceding quarter and the year-ago quarter, while capital expenditure was lower in absolute terms. This combination resulted in a higher free cash flow margin.
- Compared to the immediately preceding quarter and the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher. The free cash flow margin improved relative to both comparison periods.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$520.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$207.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$210.9M
Cash generated by operations before capital spending.
CapEx
$3.8M
Capital spending and related asset purchases.
FCF margin
38.2%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $462.5M | $116.8M | $4.5M | $112.3M | 24.3% |
| 2022-09-30 | $507.9M | $38.5M | $9.5M | $29.0M | 5.7% |
| 2022-12-31 | $465.9M | $180.9M | $9.2M | $171.7M | 36.9% |
| 2023-03-31 | $542.2M | $210.9M | $3.8M | $207.2M | 38.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 326.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.6B | 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 Growth
Operating cash flow increased compared to both the prior quarter and the year-ago quarter, outpacing the growth in revenue. This was the strongest observable driver of the higher free cash flow.
The higher operating cash flow, combined with lower capital expenditure, directly lifted free cash flow and its margin.
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 in the preceding quarter and the year-ago quarter, while capital expenditure was lower in absolute terms. This combination resulted in a higher free cash flow margin.
Compared to the immediately preceding quarter and the same quarter one year earlier, revenue, operating cash flow, and free cash flow were all higher. The free cash flow margin improved relative to both comparison periods.
Monitor the trend in capital expenditure, which was lower this quarter compared to both prior periods.