Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was slightly lower than the prior quarter but higher than the same quarter last year. Operating cash flow and free cash flow improved markedly compared to both periods, boosting the free cash flow margin.
- Operating cash flow as a percentage of revenue increased, while capital expenditure decreased, leading to a higher free cash flow margin. The conversion of revenue into cash flow strengthened.
- Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, with a notably improved margin. Versus the same quarter a year earlier, all metrics except capital expenditure were higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$856.5M
Trailing twelve-month free cash flow.
Quarter free cash flow
$253.3M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$259.0M
Cash generated by operations before capital spending.
CapEx
$5.7M
Capital spending and related asset purchases.
FCF margin
69.5%
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 | $351.9M | $144.9M | $6.2M | $138.7M | 39.4% |
| 2022-09-30 | $356.9M | $262.2M | $6.9M | $255.3M | 71.5% |
| 2022-12-31 | $369.2M | $216.9M | $7.7M | $209.2M | 56.7% |
| 2023-03-31 | $364.4M | $259.0M | $5.7M | $253.3M | 69.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 141.7% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.6% | 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 was higher than both the prior quarter and the year-ago quarter, while revenue was slightly lower than the prior quarter. This indicates a stronger cash conversion efficiency.
The increase in operating cash flow was the primary factor behind the rise in free cash flow and margin.
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 increased, while capital expenditure decreased, leading to a higher free cash flow margin. The conversion of revenue into cash flow strengthened.
Compared to the prior quarter, revenue was slightly lower but operating cash flow and free cash flow were higher, with a notably improved margin. Versus the same quarter a year earlier, all metrics except capital expenditure were higher.
Capital expenditure, which was lower than both prior periods, should be monitored for consistency.