Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially but weakened compared to the same quarter last year. The cash conversion margin rose from the prior quarter yet remained below the year-ago level.
- Revenue was slightly higher than the prior quarter and the year-ago quarter. Operating cash flow increased from the previous quarter but was lower than the same quarter last year, leading to a free cash flow margin that improved sequentially but declined year over year.
- Compared to the immediately preceding quarter, free cash flow and margin were higher. Compared to the same quarter one year earlier, free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$216.1M
Trailing twelve-month free cash flow.
Quarter free cash flow
$72.6M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$83.4M
Cash generated by operations before capital spending.
CapEx
$10.8M
Capital spending and related asset purchases.
FCF margin
24.1%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $301.3M | $83.4M | $10.8M | $72.6M | 24.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.6% | 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 variability
Operating cash flow was the strongest observable driver of free cash flow changes, rising from the prior quarter but falling from the year-ago quarter. Capital expenditure remained relatively stable across periods.
The year-over-year decline in operating cash flow reduced free cash flow despite higher revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was slightly higher than the prior quarter and the year-ago quarter. Operating cash flow increased from the previous quarter but was lower than the same quarter last year, leading to a free cash flow margin that improved sequentially but declined year over year.
Compared to the immediately preceding quarter, free cash flow and margin were higher. Compared to the same quarter one year earlier, free cash flow and margin were lower.
Monitor the trend in operating cash flow relative to revenue, as it declined year over year despite higher revenue.