Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive compared to a negative figure one year earlier, though it decreased sharply from the prior quarter. Revenue was stable versus the year-ago period and slightly higher than the preceding quarter.
- Operating cash flow was positive but significantly lower than the prior quarter, while capital expenditure was slightly higher. The free cash flow margin improved from a negative level a year ago but weakened markedly from the preceding quarter.
- Compared to the immediately preceding quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, operating cash flow and free cash flow improved from negative to positive, and the margin turned positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$536.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$30.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$72.9M
Cash generated by operations before capital spending.
CapEx
$42.8M
Capital spending and related asset purchases.
FCF margin
1.8%
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 | $1.8B | $395.1M | $72.0M | $323.1M | 17.6% |
| 2023-04-01 | $1.5B | $14.0M | $61.6M | -$47.6M | -3.1% |
| 2023-07-01 | $1.5B | $270.7M | $39.6M | $231.1M | 15.4% |
| 2023-09-30 | $1.6B | $72.9M | $42.8M | $30.1M | 1.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 20.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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.
Operating Cash Flow Decline
Operating cash flow was lower than the prior quarter, while revenue was only slightly higher. This shift drove a significant reduction in free cash flow and margin.
The lower operating cash flow was the strongest observable factor reducing free cash flow this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was positive but significantly lower than the prior quarter, while capital expenditure was slightly higher. The free cash flow margin improved from a negative level a year ago but weakened markedly from the preceding quarter.
Compared to the immediately preceding quarter, operating cash flow and free cash flow were both lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, operating cash flow and free cash flow improved from negative to positive, and the margin turned positive.
Monitor the level of operating cash flow, which declined substantially from the prior quarter despite stable revenue.