Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable sequentially but higher year-over-year. Free cash flow margin improved sharply from the prior year quarter, though it weakened from the preceding quarter.
- Operating cash flow was lower than the prior quarter but significantly higher than the same quarter last year, driving free cash flow higher year-over-year despite a modest increase in capital expenditure. The free cash flow margin reflected this pattern, improving from the year-ago period while declining from the previous quarter.
- Compared to the immediately preceding quarter, revenue was stable, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$573.6M
Trailing twelve-month free cash flow.
Quarter free cash flow
$203.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$237.4M
Cash generated by operations before capital spending.
CapEx
$34.4M
Capital spending and related asset purchases.
FCF margin
18.1%
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 | $950.3M | $44.7M | $29.1M | $15.6M | 1.6% |
| 2022-12-31 | $1.0B | $128.6M | $27.4M | $101.3M | 9.8% |
| 2023-03-31 | $1.1B | $282.6M | $28.8M | $253.7M | 22.7% |
| 2023-06-30 | $1.1B | $237.4M | $34.4M | $203.0M | 18.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 88.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.2B | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-year cash generation improvement
Operating cash flow and free cash flow were substantially higher than the same quarter last year, with the free cash flow margin rising from a low level. This was the strongest observable driver in the data.
The year-over-year improvement in cash conversion strengthened the company's liquidity position relative to the prior year.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but significantly higher than the same quarter last year, driving free cash flow higher year-over-year despite a modest increase in capital expenditure. The free cash flow margin reflected this pattern, improving from the year-ago period while declining from the previous quarter.
Compared to the immediately preceding quarter, revenue was stable, operating cash flow and free cash flow were lower, and the free cash flow margin weakened. Compared to the same quarter one year earlier, revenue, operating cash flow, capital expenditure, free cash flow, and free cash flow margin were all higher.
Monitor operating cash flow trends, as it declined from the prior quarter despite stable revenue.