Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue increased from both the prior quarter and the same quarter last year. Free cash flow margin weakened compared to both periods, driven by lower operating cash flow relative to revenue.
- Operating cash flow as a percentage of revenue was lower than the prior quarter and the year-ago quarter, resulting in a free cash flow margin that also declined. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter.
- Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, causing a weakened free cash flow margin. Versus the same quarter last year, revenue was higher while operating cash flow and free cash flow were lower, also resulting in a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$551.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$65.9M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$91.1M
Cash generated by operations before capital spending.
CapEx
$25.2M
Capital spending and related asset purchases.
FCF margin
10.9%
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 |
|---|---|---|---|---|---|
| 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% |
| 2023-12-31 | $605.8M | $91.1M | $25.2M | $65.9M | 10.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 4.2% | 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 Decline
Operating cash flow was lower than both the prior quarter and the year-ago quarter, despite higher revenue. This was the strongest observable driver of the weakened free cash flow margin.
The lower operating cash flow directly reduced free cash flow and margin compared to both comparison periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow as a percentage of revenue was lower than the prior quarter and the year-ago quarter, resulting in a free cash flow margin that also declined. Capital expenditure was higher than the prior quarter but lower than the year-ago quarter.
Compared to the prior quarter, revenue was higher but operating cash flow and free cash flow were lower, causing a weakened free cash flow margin. Versus the same quarter last year, revenue was higher while operating cash flow and free cash flow were lower, also resulting in a weakened margin.
Monitor the relationship between revenue growth and operating cash flow, as the current quarter showed higher revenue but lower cash conversion.