Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to both the prior quarter and the same quarter last year. Operating cash flow and free cash flow improved significantly versus the prior quarter and were higher than the year-ago quarter, leading to a stronger free cash flow margin.
- Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, while capital expenditure increased relative to both periods. The resulting free cash flow margin improved sequentially and was also higher than the same quarter last year.
- Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow and free cash flow were substantially higher, with free cash flow margin improving. Versus the same quarter one year earlier, revenue was marginally higher, operating cash flow and free cash flow were higher, and free cash flow margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$225.4M
Trailing twelve-month free cash flow.
Quarter free cash flow
$68.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$83.1M
Cash generated by operations before capital spending.
CapEx
$14.9M
Capital spending and related asset purchases.
FCF margin
25.0%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $272.6M | $83.1M | $14.9M | $68.3M | 25.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 248.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 5.5% | 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 Improvement
Operating cash flow increased notably from the prior quarter and was higher than the year-ago quarter, driving a substantial rise in free cash flow despite higher capital expenditure.
The stronger operating cash flow was the primary factor behind the improved free cash flow margin this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the prior quarter and the year-ago quarter, while capital expenditure increased relative to both periods. The resulting free cash flow margin improved sequentially and was also higher than the same quarter last year.
Compared to the immediately preceding quarter, revenue was slightly lower but operating cash flow and free cash flow were substantially higher, with free cash flow margin improving. Versus the same quarter one year earlier, revenue was marginally higher, operating cash flow and free cash flow were higher, and free cash flow margin strengthened.
Monitor capital expenditure levels, which were higher in the current quarter compared to both the prior quarter and the year-ago quarter.