Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow were higher than the same quarter last year but lower than the prior quarter. Free cash flow margin weakened sequentially and was slightly lower year-over-year.
- Revenue generated operating cash flow, which after capital expenditure resulted in free cash flow with a margin that was lower than both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was slightly lower and free cash flow margin weakened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$215.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$45.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$59.4M
Cash generated by operations before capital spending.
CapEx
$13.6M
Capital spending and related asset purchases.
FCF margin
16.5%
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 | $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% |
| 2023-09-30 | $276.9M | $59.4M | $13.6M | $45.8M | 16.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 89.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.9% | 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.
Capital Expenditure
Capital expenditure was higher compared to both the prior quarter and the same quarter one year earlier.
The higher capital expenditure was associated with a lower free cash flow margin despite higher operating cash flow.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue generated operating cash flow, which after capital expenditure resulted in free cash flow with a margin that was lower than both the prior quarter and the year-ago quarter.
Compared to the prior quarter, revenue, operating cash flow, free cash flow, and free cash flow margin were all lower, while capital expenditure was higher. Compared to the same quarter one year earlier, revenue and operating cash flow were higher, but free cash flow was slightly lower and free cash flow margin weakened.
Monitor the trend in capital expenditure, which was higher in the current quarter compared to both the prior quarter and the same quarter last year.