Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
For the quarter, revenue increased slightly while operating cash flow decreased, resulting in lower free cash flow and a weaker margin compared to both the prior quarter and the same quarter last year. The company's filing notes that its liquid assets consist of cash and short-term marketable securities, all maturing within one year.
- The company converted a smaller share of revenue into free cash flow than in the preceding quarter or the year-ago period, as operating cash flow declined despite a higher revenue figure.
- Relative to the prior quarter, free cash flow and margin both weakened; capital expenditure was notably lower. Compared with the same quarter a year earlier, free cash flow and margin also declined, while revenue was higher.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$808.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$199.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$204.2M
Cash generated by operations before capital spending.
CapEx
$5.0M
Capital spending and related asset purchases.
FCF margin
52.4%
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 |
|---|---|---|---|---|---|
| 2023-03-31 | $364.4M | $259.0M | $5.7M | $253.3M | 69.5% |
| 2023-06-30 | $372.0M | $145.3M | $6.5M | $138.8M | 37.3% |
| 2023-09-30 | $376.3M | $245.3M | $28.6M | $216.7M | 57.6% |
| 2023-12-31 | $380.4M | $204.2M | $5.0M | $199.2M | 52.4% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 75.3% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 1.3% | 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 Decline
Operating cash flow fell compared to the prior quarter and the year-ago quarter, despite higher revenue. This decline was the strongest factor weighing on free cash flow.
The lower operating cash flow reduced free cash flow and margin, even though capital expenditure was also lower.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
The company converted a smaller share of revenue into free cash flow than in the preceding quarter or the year-ago period, as operating cash flow declined despite a higher revenue figure.
Relative to the prior quarter, free cash flow and margin both weakened; capital expenditure was notably lower. Compared with the same quarter a year earlier, free cash flow and margin also declined, while revenue was higher.
Monitor whether operating cash flow recovers to prior levels, as it was the main driver of the quarter's lower free cash flow.