Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue improved versus both the prior quarter and the year-ago quarter. Free cash flow margin weakened compared to the prior quarter but strengthened compared to the same quarter last year.
- Operating cash flow exceeded capital expenditure, generating positive free cash flow. The free cash flow margin was lower than the prior quarter but higher than the year-ago quarter, reflecting a mixed conversion pattern.
- Compared to the immediately preceding quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$538.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$120.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$128.1M
Cash generated by operations before capital spending.
CapEx
$7.4M
Capital spending and related asset purchases.
FCF margin
26.0%
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 |
|---|---|---|---|---|---|
| 2022-09-30 | $394.8M | $137.3M | $23.9M | $113.4M | 28.7% |
| 2022-12-31 | $490.7M | $173.5M | $47.8M | $125.7M | 25.6% |
| 2023-03-31 | $382.8M | $187.6M | $9.2M | $178.4M | 46.6% |
| 2023-06-30 | $464.3M | $128.1M | $7.4M | $120.7M | 26.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 366.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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.
Revenue Growth
Revenue was higher compared to both the prior quarter and the year-ago quarter, representing the strongest observable driver of improvement in free cash flow relative to the same quarter last year.
Higher revenue supported a larger absolute free cash flow amount versus 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 exceeded capital expenditure, generating positive free cash flow. The free cash flow margin was lower than the prior quarter but higher than the year-ago quarter, reflecting a mixed conversion pattern.
Compared to the immediately preceding quarter, revenue increased while operating cash flow, free cash flow, and free cash flow margin were all lower. Compared to the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor the relationship between operating cash flow and revenue, as operating cash flow declined despite higher revenue.