Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue declined from the prior quarter but rose compared to the same quarter last year. Operating cash flow and free cash flow improved sequentially and year-over-year, while the free cash flow margin strengthened versus the prior quarter but weakened relative to the year-ago period.
- Operating cash flow as a share of revenue increased compared to both the prior quarter and the year-ago quarter, supporting a higher free cash flow margin than the prior quarter despite lower revenue. Capital expenditure was higher than both comparison periods, but the increase in operating cash flow more than offset this, resulting in higher free cash flow.
- Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were higher, while free cash flow margin was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$495.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$141.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$152.8M
Cash generated by operations before capital spending.
CapEx
$11.2M
Capital spending and related asset purchases.
FCF margin
18.8%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $658.0M | $100.8M | $7.6M | $93.1M | 14.2% |
| 2023-06-30 | $820.8M | $147.4M | $6.8M | $140.6M | 17.1% |
| 2023-09-30 | $840.4M | $127.4M | $6.9M | $120.5M | 14.3% |
| 2023-12-31 | $754.1M | $152.8M | $11.2M | $141.6M | 18.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 130.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.5% | 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 Strength
Operating cash flow rose sequentially and year-over-year despite a sequential decline in revenue, indicating a higher cash conversion rate from revenue. This was the strongest observable driver of the free cash flow improvement.
Higher operating cash flow directly lifted free cash flow and the free cash flow margin compared to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a share of revenue increased compared to both the prior quarter and the year-ago quarter, supporting a higher free cash flow margin than the prior quarter despite lower revenue. Capital expenditure was higher than both comparison periods, but the increase in operating cash flow more than offset this, resulting in higher free cash flow.
Compared to the prior quarter, revenue was lower but operating cash flow, free cash flow, and free cash flow margin were all higher. Versus the same quarter last year, revenue, operating cash flow, and free cash flow were higher, while free cash flow margin was lower.
Monitor the trajectory of capital expenditure, which increased from both comparison periods and may affect future free cash flow conversion.