Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow margin both improved compared to the prior quarter and the same quarter last year. Operating cash flow was higher than a year ago but slightly lower than the preceding quarter.
- Revenue increased while operating cash flow was slightly lower than the prior quarter, resulting in a free cash flow margin that was higher than the preceding quarter and significantly higher than a year ago. Capital expenditure was lower than both comparison periods, supporting free cash flow.
- Compared to the preceding quarter, revenue was higher but operating cash flow was lower, leading to a slightly lower free cash flow and a weakened free cash flow margin. Versus the same quarter last year, all metrics were higher, with free cash flow margin showing the most improvement.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$962.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$249.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$272.8M
Cash generated by operations before capital spending.
CapEx
$23.4M
Capital spending and related asset purchases.
FCF margin
21.5%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-09-30 | $1.1B | $286.3M | $30.0M | $256.2M | 23.2% |
| 2023-12-31 | $1.2B | $272.8M | $23.4M | $249.5M | 21.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 119.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$1.0B | 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
Revenue was higher than both the preceding quarter and the same quarter last year, providing a stronger base for cash generation. This was the most observable positive change among the supplied metrics.
Higher revenue supported a free cash flow margin that was higher than a year ago, despite a slight sequential decline in operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue increased while operating cash flow was slightly lower than the prior quarter, resulting in a free cash flow margin that was higher than the preceding quarter and significantly higher than a year ago. Capital expenditure was lower than both comparison periods, supporting free cash flow.
Compared to the preceding quarter, revenue was higher but operating cash flow was lower, leading to a slightly lower free cash flow and a weakened free cash flow margin. Versus the same quarter last year, all metrics were higher, with free cash flow margin showing the most improvement.
Monitor whether operating cash flow can sustain its level relative to revenue, given it was lower than the prior quarter despite higher revenue.