Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The company generated higher free cash flow and an improved free cash flow margin compared to both the prior quarter and the same quarter a year ago. Cash conversion strengthened as operating cash flow rose while capital expenditure remained stable.
- Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow improved sequentially and year-over-year, while capital expenditure increased modestly. The result was higher free cash flow and a stronger free cash flow margin relative to both comparison periods.
- Compared with the prior quarter, revenue was lower yet free cash flow and margin were higher, indicating a more efficient cash conversion. Year-over-year, all key metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$565.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$133.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$147.1M
Cash generated by operations before capital spending.
CapEx
$13.2M
Capital spending and related asset purchases.
FCF margin
14.0%
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 |
|---|---|---|---|---|---|
| 2022-12-30 | $856.5M | $106.1M | $6.6M | $99.5M | 11.6% |
| 2023-03-31 | $915.4M | $208.7M | $6.4M | $202.3M | 22.1% |
| 2023-06-30 | $993.6M | $142.4M | $12.6M | $129.8M | 13.1% |
| 2023-09-29 | $957.3M | $147.1M | $13.2M | $133.9M | 14.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 178.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.4% | 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 Rise
Operating cash flow increased both sequentially and year-over-year, outpacing revenue trends and driving a higher free cash flow margin. This was the strongest observable driver of the quarter's cash conversion improvement.
The improvement in operating cash flow directly lifted free cash flow and margin without a corresponding increase in capital expenditure.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than the same quarter last year. Operating cash flow improved sequentially and year-over-year, while capital expenditure increased modestly. The result was higher free cash flow and a stronger free cash flow margin relative to both comparison periods.
Compared with the prior quarter, revenue was lower yet free cash flow and margin were higher, indicating a more efficient cash conversion. Year-over-year, all key metrics—revenue, operating cash flow, free cash flow, and margin—were higher.
Monitor operating cash flow sustainability given that the sequential improvement occurred despite lower revenue.