Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
The current quarter's free cash flow and margin weakened compared to both the prior quarter and the same quarter last year, as lower operating cash flow outweighed a slight revenue change. Capital expenditure rose, further compressing free cash flow.
- Revenue was stable compared to the prior periods, but operating cash flow declined significantly, resulting in a lower cash conversion rate. The increase in capital expenditure also reduced free cash flow, leading to a substantially lower free cash flow margin.
- Compared to the immediately preceding quarter, free cash flow and margin weakened as operating cash flow fell sharply despite a slight revenue increase. Year-over-year, both operating cash flow and free cash flow were lower, while capital expenditure increased.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$410.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$56.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$138.1M
Cash generated by operations before capital spending.
CapEx
$82.1M
Capital spending and related asset purchases.
FCF margin
7.8%
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 | $771.3M | $173.1M | $66.1M | $107.0M | 13.9% |
| 2022-09-30 | $686.9M | $168.9M | $57.8M | $111.1M | 16.2% |
| 2022-12-31 | $708.7M | $230.8M | $94.9M | $135.9M | 19.2% |
| 2023-03-31 | $716.6M | $138.1M | $82.1M | $56.0M | 7.8% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 40.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 11.5% | Lower capital intensity usually supports FCF margin. |
| Net cash | $678.0M | 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 compared to both the prior quarter and the same quarter last year, primarily due to a decline in operating results as disclosed by the company.
The lower operating cash flow was the main factor behind the reduced free cash flow and margin.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was stable compared to the prior periods, but operating cash flow declined significantly, resulting in a lower cash conversion rate. The increase in capital expenditure also reduced free cash flow, leading to a substantially lower free cash flow margin.
Compared to the immediately preceding quarter, free cash flow and margin weakened as operating cash flow fell sharply despite a slight revenue increase. Year-over-year, both operating cash flow and free cash flow were lower, while capital expenditure increased.
Monitor the trajectory of capital expenditure, as it has increased and may continue to pressure free cash flow if operating cash flow does not recover.