Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly higher than the prior quarter and the year-ago quarter, but free cash flow margin weakened compared to both periods. Operating cash flow declined from both the preceding quarter and the same quarter last year, while capital expenditure increased sequentially.
- Revenue was stable, but operating cash flow was lower than both the prior quarter and the year-ago period, resulting in a lower free cash flow margin. Capital expenditure was higher than the previous quarter but lower than the same quarter last year.
- Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$232.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$38.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$50.5M
Cash generated by operations before capital spending.
CapEx
$11.7M
Capital spending and related asset purchases.
FCF margin
13.2%
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 | $288.2M | $102.7M | $13.6M | $89.1M | 30.9% |
| 2022-09-30 | $269.7M | $56.1M | $9.6M | $46.5M | 17.3% |
| 2022-12-31 | $271.6M | $64.4M | $6.1M | $58.3M | 21.5% |
| 2023-03-31 | $294.1M | $50.5M | $11.7M | $38.8M | 13.2% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 55.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.0% | 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 Weakening
Operating cash flow was lower than both the preceding quarter and the same quarter last year, while revenue was stable or slightly higher. This divergence is the strongest observable driver of the lower free cash flow margin.
The lower operating cash flow directly reduced free cash flow and free cash flow margin compared to both prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow was lower than both the prior quarter and the year-ago period, resulting in a lower free cash flow margin. Capital expenditure was higher than the previous quarter but lower than the same quarter last year.
Compared to the immediately preceding quarter, revenue improved while operating cash flow, free cash flow, and free cash flow margin all weakened. Versus the same quarter one year earlier, revenue was slightly higher, but operating cash flow, free cash flow, and free cash flow margin were all lower.
Monitor the trend in operating cash flow, which declined from both the prior quarter and the year-ago quarter despite stable revenue.