Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin was lower than the prior quarter but higher than the same quarter last year. Operating cash flow declined sequentially while capital expenditure also decreased.
- Revenue was converted into free cash flow at a high margin, supported by relatively low capital expenditure relative to operating cash flow. The filing notes that capital expenditures are under the company's control, which helps maintain this conversion efficiency.
- Compared to the prior quarter, free cash flow and margin were lower; compared to the same quarter a year earlier, free cash flow and margin were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$434.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$111.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$114.8M
Cash generated by operations before capital spending.
CapEx
$3.8M
Capital spending and related asset purchases.
FCF margin
75.8%
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 | $176.3M | $87.7M | $7.3M | $80.3M | 45.6% |
| 2022-09-30 | $191.1M | $119.2M | $1.8M | $117.4M | 61.4% |
| 2022-12-31 | $152.7M | $132.5M | $6.8M | $125.7M | 82.3% |
| 2023-03-31 | $146.4M | $114.8M | $3.8M | $111.0M | 75.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 128.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.6% | 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 margin shift
The operating cash flow margin decreased from the previous quarter but increased compared to the same quarter last year. This change directly influenced the direction of free cash flow margin.
The sequential weakening in operating cash flow margin was the primary factor behind the lower free cash flow margin relative to the prior quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was converted into free cash flow at a high margin, supported by relatively low capital expenditure relative to operating cash flow. The filing notes that capital expenditures are under the company's control, which helps maintain this conversion efficiency.
Compared to the prior quarter, free cash flow and margin were lower; compared to the same quarter a year earlier, free cash flow and margin were higher.
Monitor the sustainability of the operating cash flow margin given its sequential decline.