Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Cash conversion weakened sequentially as operating cash flow and free cash flow declined relative to revenue, but improved compared to the same quarter last year. The decline in operating cash flow was the primary factor.
- Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow and free cash flow followed a similar pattern, with free cash flow margin decreasing sequentially but increasing year-over-year. Capital expenditure was higher than both comparison periods.
- Compared to the immediately preceding quarter, all cash flow metrics and margin were lower. Compared to the same quarter one year earlier, all metrics were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$359.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$139.4M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$147.4M
Cash generated by operations before capital spending.
CapEx
$8.0M
Capital spending and related asset purchases.
FCF margin
29.0%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $471.9M | $74.7M | $2.0M | $72.7M | 15.4% |
| 2023-06-30 | $504.3M | -$19.2M | $4.3M | -$23.5M | -4.7% |
| 2023-09-30 | $494.7M | $177.5M | $6.1M | $171.4M | 34.6% |
| 2023-12-31 | $480.9M | $147.4M | $8.0M | $139.4M | 29.0% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 358.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$480.5M | 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 decreased from the prior quarter while revenue also decreased, resulting in a lower free cash flow margin.
The reduction in operating cash flow was the main contributor to the sequential weakening in cash conversion.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter but higher than a year ago. Operating cash flow and free cash flow followed a similar pattern, with free cash flow margin decreasing sequentially but increasing year-over-year. Capital expenditure was higher than both comparison periods.
Compared to the immediately preceding quarter, all cash flow metrics and margin were lower. Compared to the same quarter one year earlier, all metrics were higher.
Monitor the trend in operating cash flow given its sequential decline.