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. Operating cash flow turned positive, leading to positive free cash flow, though both were lower than the year-ago period.
- Operating cash flow improved from negative to positive, while capital expenditure decreased, resulting in positive free cash flow. The free cash flow margin also turned positive.
- Compared to the prior quarter, operating cash flow and free cash flow improved significantly. Versus the same quarter last year, both operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$591.8M
Trailing twelve-month free cash flow.
Quarter free cash flow
$267.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$270.5M
Cash generated by operations before capital spending.
CapEx
$2.6M
Capital spending and related asset purchases.
FCF margin
12.6%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $1.8B | $161.1M | $9.9M | $151.2M | 8.4% |
| 2023-03-31 | $1.3B | $198.2M | $8.0M | $190.3M | 14.8% |
| 2023-06-30 | $2.2B | -$9.3M | $8.2M | -$17.5M | -0.8% |
| 2023-09-30 | $2.1B | $270.5M | $2.6M | $267.8M | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 170.6% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.1% | 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 Recovery
Operating cash flow shifted from negative to positive, driven by changes in working capital and revenue levels as noted in the filing.
This recovery enabled positive free cash flow after a negative prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow improved from negative to positive, while capital expenditure decreased, resulting in positive free cash flow. The free cash flow margin also turned positive.
Compared to the prior quarter, operating cash flow and free cash flow improved significantly. Versus the same quarter last year, both operating cash flow and free cash flow were lower, and the free cash flow margin weakened.
Monitor the free cash flow margin, which declined relative to the year-ago quarter.