Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and operating cash flow both increased compared to the prior quarter and the same quarter last year. Free cash flow margin improved versus both periods, driven by higher operating cash flow and lower capital expenditure.
- Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, reflecting improved cash conversion. Capital expenditure remained low relative to revenue, supporting a higher free cash flow margin.
- Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, and free cash flow margin strengthened.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$611.3M
Trailing twelve-month free cash flow.
Quarter free cash flow
$186.5M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$191.5M
Cash generated by operations before capital spending.
CapEx
$5.0M
Capital spending and related asset purchases.
FCF margin
37.8%
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 | $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% |
| 2023-09-30 | $493.3M | $191.5M | $5.0M | $186.5M | 37.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 473.9% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.0% | 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 Growth
Operating cash flow increased substantially compared to both the prior quarter and the year-ago quarter, outpacing revenue growth. This was the strongest observable driver of the improvement in free cash flow.
Higher operating cash flow directly lifted free cash flow and margin without requiring a proportional increase in capital spending.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a proportion of revenue was higher than both the preceding quarter and the year-ago quarter, reflecting improved cash conversion. Capital expenditure remained low relative to revenue, supporting a higher free cash flow margin.
Compared to the immediately preceding quarter, revenue, operating cash flow, and free cash flow were all higher, and free cash flow margin improved. Versus the same quarter one year earlier, all metrics were higher, and free cash flow margin strengthened.
Monitor the trend in capital expenditure, which decreased from both the prior quarter and the year-ago quarter, as a sustained low level may affect future capacity.