Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Operating cash flow decreased from both the prior quarter and the year-ago period, while free cash flow margin was positive.
- Operating cash flow exceeded capital expenditure, resulting in positive free cash flow and a positive free cash flow margin, indicating that the company converted a portion of its revenue into free cash flow after investing in capital assets.
- Compared to the immediately preceding quarter, revenue was stable while operating cash flow was lower. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
n/a
Trailing twelve-month free cash flow.
Quarter free cash flow
$130.2M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$242.8M
Cash generated by operations before capital spending.
CapEx
$112.7M
Capital spending and related asset purchases.
FCF margin
12.1%
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 | $1.0B | $278.1M | n/a | n/a | n/a |
| 2022-09-30 | $1.0B | $300.3M | n/a | n/a | n/a |
| 2022-12-31 | $1.1B | $267.3M | n/a | n/a | n/a |
| 2023-03-31 | $1.1B | $242.8M | $112.7M | $130.2M | 12.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 688.2% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 10.5% | 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 was lower than both the immediately preceding quarter and the same quarter one year earlier, despite revenue being stable or higher. This shift weakened cash conversion relative to prior periods.
The decline in operating cash flow reduced the free cash flow generated from revenue compared to prior periods.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow exceeded capital expenditure, resulting in positive free cash flow and a positive free cash flow margin, indicating that the company converted a portion of its revenue into free cash flow after investing in capital assets.
Compared to the immediately preceding quarter, revenue was stable while operating cash flow was lower. Compared to the same quarter one year earlier, revenue was higher but operating cash flow was lower.
Monitor the trend in operating cash flow, which declined from both the prior quarter and the year-ago period.