Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow improved sequentially as operating cash flow rose while capital expenditure declined, though it remained lower than the same quarter last year. The free cash flow margin strengthened versus the prior quarter but weakened compared to the year-ago period.
- Revenue was stable sequentially, while operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Compared to the prior year, revenue was higher but operating cash flow was lower, resulting in a lower free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin improved due to higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were lower, driven by a decline in operating cash flow despite higher revenue.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$803.9M
Trailing twelve-month free cash flow.
Quarter free cash flow
$195.8M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$250.1M
Cash generated by operations before capital spending.
CapEx
$54.3M
Capital spending and related asset purchases.
FCF margin
28.9%
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 |
|---|---|---|---|---|---|
| 2022-12-31 | $630.5M | $249.0M | $79.7M | $169.3M | 26.9% |
| 2023-03-31 | $651.6M | $365.3M | $61.2M | $304.1M | 46.7% |
| 2023-06-30 | $675.0M | $192.9M | $58.2M | $134.7M | 20.0% |
| 2023-09-30 | $677.6M | $250.1M | $54.3M | $195.8M | 28.9% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 104.5% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 8.0% | 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 Recovery
Operating cash flow increased sequentially from the prior quarter, contributing to a higher free cash flow and margin. This improvement occurred even as revenue remained essentially flat.
The sequential rise in operating cash flow was the strongest observable driver of the quarter's free cash flow improvement.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable sequentially, while operating cash flow increased, leading to higher free cash flow and an improved free cash flow margin. Compared to the prior year, revenue was higher but operating cash flow was lower, resulting in a lower free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin improved due to higher operating cash flow and lower capital expenditure. Versus the same quarter one year earlier, free cash flow and margin were lower, driven by a decline in operating cash flow despite higher revenue.
Monitor the trajectory of operating cash flow, which declined year over year despite higher revenue.