Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter and higher than the same quarter last year. Free cash flow and free cash flow margin weakened sharply from the prior quarter but improved compared to the same quarter last year.
- Operating cash flow was lower than revenue, resulting in a free cash flow margin that was lower than the prior quarter but higher than the same quarter last year. Capital expenditure was relatively stable across periods.
- Compared to the prior quarter, operating cash flow and free cash flow were significantly lower, while revenue was slightly higher. Compared to the same quarter last year, operating cash flow, free cash flow, and revenue were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$587.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$44.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$49.8M
Cash generated by operations before capital spending.
CapEx
$5.8M
Capital spending and related asset purchases.
FCF margin
8.0%
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 | $465.9M | $180.9M | $9.2M | $171.7M | 36.9% |
| 2023-03-31 | $542.2M | $210.9M | $3.8M | $207.2M | 38.2% |
| 2023-06-30 | $542.3M | $169.2M | $5.1M | $164.1M | 30.3% |
| 2023-09-30 | $546.6M | $49.8M | $5.8M | $44.0M | 8.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.4B | 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 Volatility
Operating cash flow was substantially lower than the prior quarter despite similar revenue, indicating a shift in cash conversion efficiency. The filing context notes that annual cash flow from operations increased year over year, but quarterly data shows a sharp sequential decline.
This volatility directly drove the sequential weakening of free cash flow and free cash flow margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than revenue, resulting in a free cash flow margin that was lower than the prior quarter but higher than the same quarter last year. Capital expenditure was relatively stable across periods.
Compared to the prior quarter, operating cash flow and free cash flow were significantly lower, while revenue was slightly higher. Compared to the same quarter last year, operating cash flow, free cash flow, and revenue were all higher.
Monitor the relationship between operating cash flow and revenue in the next quarter to assess cash conversion stability.