Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Operating cash flow improved compared to the prior quarter, yielding higher free cash flow and a stronger margin. Revenue was slightly lower than the previous quarter and considerably lower than the same quarter a year ago.
- Revenue conversion into operating cash flow strengthened versus the previous quarter, as operating cash flow rose while revenue was slightly lower. Capital expenditure increased modestly, but free cash flow and free cash flow margin still improved sequentially.
- Compared to the immediately preceding quarter, free cash flow margin improved, driven by higher operating cash flow despite a small rise in capital expenditure. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$422.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$102.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$107.6M
Cash generated by operations before capital spending.
CapEx
$5.2M
Capital spending and related asset purchases.
FCF margin
64.8%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $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% |
| 2023-09-30 | $158.0M | $107.6M | $5.2M | $102.4M | 64.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 96.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.3% | 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.
Sequential Operating Cash Flow Improvement
Operating cash flow rose compared to the prior quarter, driving a higher free cash flow and margin despite a slight dip in revenue. This is the strongest observable driver of the quarter's performance from the supplied metrics.
Higher operating cash flow was the primary factor behind the sequential increase in free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue conversion into operating cash flow strengthened versus the previous quarter, as operating cash flow rose while revenue was slightly lower. Capital expenditure increased modestly, but free cash flow and free cash flow margin still improved sequentially.
Compared to the immediately preceding quarter, free cash flow margin improved, driven by higher operating cash flow despite a small rise in capital expenditure. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and margin were all lower.
Monitor the level of capital expenditure, which increased from both the prior quarter and the year-ago period, as it affects free cash flow conversion.