Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow turned positive this quarter, driven by a significant increase in operating cash flow. Revenue remained stable compared to the prior quarter, while capital expenditure decreased slightly.
- Revenue was stable, but operating cash flow improved substantially, leading to a positive free cash flow margin. Capital expenditure was lower than both the prior quarter and the same quarter last year, supporting the conversion.
- Compared to the prior quarter, free cash flow improved from negative to positive, with higher operating cash flow and slightly lower capital expenditure. Versus the same quarter last year, free cash flow also turned positive, driven by higher operating cash flow and lower capital expenditure.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$249.2M
Trailing twelve-month free cash flow.
Quarter free cash flow
$36.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$64.8M
Cash generated by operations before capital spending.
CapEx
$28.4M
Capital spending and related asset purchases.
FCF margin
2.8%
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 | $1.4B | -$119.6M | $38.3M | -$157.9M | -11.2% |
| 2023-03-31 | $1.4B | -$34.7M | $66.5M | -$101.2M | -7.0% |
| 2023-06-30 | $1.3B | $5.0M | $31.5M | -$26.5M | -2.1% |
| 2023-09-30 | $1.3B | $64.8M | $28.4M | $36.4M | 2.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | -6.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.2% | 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 Improvement
Operating cash flow increased significantly from the prior quarter and the same quarter last year, driving the positive free cash flow. This was the strongest observable factor in the quarter's cash conversion.
The improvement in operating cash flow was the primary reason free cash flow turned positive this quarter.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable, but operating cash flow improved substantially, leading to a positive free cash flow margin. Capital expenditure was lower than both the prior quarter and the same quarter last year, supporting the conversion.
Compared to the prior quarter, free cash flow improved from negative to positive, with higher operating cash flow and slightly lower capital expenditure. Versus the same quarter last year, free cash flow also turned positive, driven by higher operating cash flow and lower capital expenditure.
Monitor the level of capital expenditure, as it decreased this quarter and could influence future free cash flow.