Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue rose compared to the prior quarter and the same quarter one year earlier. Free cash flow margin improved relative to the same quarter one year earlier but weakened from the prior quarter.
- Operating cash flow and free cash flow were both higher than the same quarter one year earlier, contributing to an improved free cash flow margin. Capital expenditure was lower sequentially and year over year, supporting retained cash flow.
- Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus 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
$382.7M
Trailing twelve-month free cash flow.
Quarter free cash flow
$72.7M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$74.7M
Cash generated by operations before capital spending.
CapEx
$2.0M
Capital spending and related asset purchases.
FCF margin
15.4%
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 |
|---|---|---|---|---|---|
| 2022-06-30 | $468.7M | $76.7M | $8.2M | $68.5M | 14.6% |
| 2022-09-30 | $473.2M | $129.4M | $4.7M | $124.7M | 26.4% |
| 2022-12-31 | $452.2M | $121.9M | $5.1M | $116.8M | 25.8% |
| 2023-03-31 | $471.9M | $74.7M | $2.0M | $72.7M | 15.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 235.4% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 0.4% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$737.7M | 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 and capital expenditure discipline
Revenue increased relative to both the prior quarter and the same quarter one year earlier. Capital expenditure was lower than both comparison periods, which supported a higher free cash flow margin compared to the same quarter a year ago.
These trends contributed to free cash flow being higher year over year despite a sequential decline.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow and free cash flow were both higher than the same quarter one year earlier, contributing to an improved free cash flow margin. Capital expenditure was lower sequentially and year over year, supporting retained cash flow.
Compared to the prior quarter, revenue was higher but operating cash flow, free cash flow, and free cash flow margin were all lower. Versus the same quarter one year earlier, revenue, operating cash flow, free cash flow, and free cash flow margin were all higher.
Monitor operating cash flow relative to revenue in future quarters, as the sequential decline in cash conversion may warrant attention.