Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow were higher than the prior quarter but lower than the same quarter last year. The free cash flow margin improved compared to a year ago but weakened from the preceding quarter.
- Operating cash flow was lower than the prior quarter but similar to a year ago, while capital expenditure was lower in both comparisons. The resulting free cash flow margin was higher than the year-ago quarter but lower than the preceding quarter.
- Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a lower free cash flow margin. Versus the year-ago quarter, revenue was lower while operating cash flow was slightly lower, yet free cash flow was higher due to lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$437.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$83.1M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$84.5M
Cash generated by operations before capital spending.
CapEx
$1.4M
Capital spending and related asset purchases.
FCF margin
51.8%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $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% |
| 2023-06-30 | $160.6M | $84.5M | $1.4M | $83.1M | 51.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 82.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.9% | 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.
Lower capital expenditure
Capital expenditure was lower than both the prior quarter and the year-ago quarter, which supported free cash flow despite lower operating cash flow relative to the prior quarter.
The reduction in capital expenditure was the strongest observable driver of free cash flow relative to the year-ago quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow was lower than the prior quarter but similar to a year ago, while capital expenditure was lower in both comparisons. The resulting free cash flow margin was higher than the year-ago quarter but lower than the preceding quarter.
Compared to the prior quarter, revenue was higher but operating cash flow was lower, leading to a lower free cash flow margin. Versus the year-ago quarter, revenue was lower while operating cash flow was slightly lower, yet free cash flow was higher due to lower capital expenditure.
Monitor the relationship between revenue and operating cash flow, as the current quarter showed higher revenue but lower cash conversion compared to the prior quarter.