Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter but higher than the same quarter last year. Free cash flow margin weakened from the prior quarter but improved from the year-ago quarter.
- Operating cash flow was lower than the prior quarter but higher than the year-ago quarter, while capital expenditure remained relatively stable across all periods. Free cash flow followed the same pattern as operating cash flow, resulting in a free cash flow margin that weakened sequentially but improved year-over-year.
- Compared to the prior quarter, revenue was slightly lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were higher, and free cash flow margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$448.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$93.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$100.8M
Cash generated by operations before capital spending.
CapEx
$7.6M
Capital spending and related asset purchases.
FCF margin
14.2%
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 | $714.0M | $127.3M | $7.9M | $119.4M | 16.7% |
| 2022-09-30 | $729.7M | $127.7M | $7.0M | $120.7M | 16.5% |
| 2022-12-31 | $661.4M | $123.4M | $7.7M | $115.7M | 17.5% |
| 2023-03-31 | $658.0M | $100.8M | $7.6M | $93.1M | 14.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 105.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.2% | 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.
Year-over-year cash flow improvement
Operating cash flow and free cash flow were both higher than the same quarter last year, with free cash flow margin also improving. This represents the strongest observable driver of the quarter's performance.
The year-over-year improvement in free cash flow margin indicates a more efficient conversion of revenue into free cash flow compared 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 higher than the year-ago quarter, while capital expenditure remained relatively stable across all periods. Free cash flow followed the same pattern as operating cash flow, resulting in a free cash flow margin that weakened sequentially but improved year-over-year.
Compared to the prior quarter, revenue was slightly lower, operating cash flow and free cash flow were lower, and free cash flow margin weakened. Compared to the same quarter one year earlier, revenue was higher, operating cash flow and free cash flow were higher, and free cash flow margin improved.
Monitor the trend in operating cash flow relative to revenue, as it declined sequentially despite stable revenue.