Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was lower than the prior quarter but higher than the same quarter last year. Free cash flow improved significantly compared to both periods, driven by a higher operating cash flow relative to revenue.
- Operating cash flow exceeded capital expenditure by a wide margin, resulting in a free cash flow margin that was higher than the prior quarter and substantially improved from the negative margin a year ago.
- Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin. Versus the same quarter last year, all cash flow metrics improved from negative to positive territory.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$608.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$190.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$198.2M
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
14.8%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $1.6B | -$25.1M | $11.0M | -$36.2M | -2.2% |
| 2022-09-30 | $1.9B | $313.6M | $10.7M | $302.8M | 16.4% |
| 2022-12-31 | $1.8B | $161.1M | $9.9M | $151.2M | 8.4% |
| 2023-03-31 | $1.3B | $198.2M | $8.0M | $190.3M | 14.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 221.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.6% | 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 was the strongest observable driver, rising compared to both the prior quarter and the year-ago period, despite a lower revenue base than the prior quarter.
This improvement directly lifted free cash flow and the free cash flow margin to positive levels.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure by a wide margin, resulting in a free cash flow margin that was higher than the prior quarter and substantially improved from the negative margin a year ago.
Compared to the prior quarter, revenue was lower but operating cash flow and free cash flow were higher, leading to a stronger free cash flow margin. Versus the same quarter last year, all cash flow metrics improved from negative to positive territory.
Monitor whether operating cash flow can sustain its current level relative to revenue in future quarters.