Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both improved compared to the prior quarter and the same quarter last year. Free cash flow turned positive from a negative position a year ago, with the margin strengthening significantly.
- Operating cash flow exceeded revenue growth, resulting in a higher free cash flow margin. Capital expenditure remained absent, so free cash flow equaled operating cash flow.
- Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Versus the same quarter one year earlier, all metrics were higher and the margin shifted from negative to positive.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$33.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$46.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$46.1M
Cash generated by operations before capital spending.
CapEx
$0
Capital spending and related asset purchases.
FCF margin
23.7%
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 | $70.1M | -$83.7M | $0 | -$83.7M | -119.4% |
| 2023-06-30 | $74.8M | -$10.6M | $200000 | -$10.8M | -14.4% |
| 2023-09-30 | $115.3M | $14.6M | $0 | $14.6M | 12.7% |
| 2023-12-31 | $194.8M | $46.1M | $0 | $46.1M | 23.7% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -192.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.0% | Lower capital intensity usually supports FCF margin. |
| Net cash | $379.7M | 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 increased substantially from both the prior quarter and the year-ago period, driving free cash flow higher. The margin improvement reflects this cash conversion efficiency.
The stronger operating cash flow was the primary factor behind the positive free cash flow and margin expansion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded revenue growth, resulting in a higher free cash flow margin. Capital expenditure remained absent, so free cash flow equaled operating cash flow.
Compared to the prior quarter, revenue, operating cash flow, and free cash flow were all higher, and the margin improved. Versus the same quarter one year earlier, all metrics were higher and the margin shifted from negative to positive.
Monitor whether operating cash flow can sustain its positive level relative to revenue in future periods.