Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow both improved sequentially, though free cash flow remained below the prior year's level. Operating cash flow turned positive after a negative prior quarter, driving the recovery in free cash flow.
- Operating cash flow of one hundred forty-one million dollars against revenue of one billion dollars yielded a free cash flow margin of ten point one percent, a significant improvement from the negative margin in the prior quarter but lower than the year-ago margin.
- Compared to the prior quarter, revenue was higher and operating cash flow shifted from negative to positive, resulting in a much improved free cash flow. Versus the same quarter last year, revenue was lower and free cash flow was lower, with a weakened margin.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
-$91.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$102.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$141.0M
Cash generated by operations before capital spending.
CapEx
$39.0M
Capital spending and related asset purchases.
FCF margin
10.1%
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 |
|---|---|---|---|---|---|
| 2023-04-01 | $1.4B | -$76.0M | $16.0M | -$92.0M | -6.5% |
| 2023-07-01 | $1.2B | -$34.0M | $18.0M | -$52.0M | -4.3% |
| 2023-09-30 | $956.0M | -$35.0M | $14.0M | -$49.0M | -5.1% |
| 2023-12-31 | $1.0B | $141.0M | $39.0M | $102.0M | 10.1% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 600.0% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.9% | Lower capital intensity usually supports FCF margin. |
| Net cash | -$2.1B | 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 improved from negative thirty-five million dollars in the prior quarter to positive one hundred forty-one million dollars, the strongest observable driver of the quarter's free cash flow.
This swing was the primary factor behind the sequential improvement 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 of one hundred forty-one million dollars against revenue of one billion dollars yielded a free cash flow margin of ten point one percent, a significant improvement from the negative margin in the prior quarter but lower than the year-ago margin.
Compared to the prior quarter, revenue was higher and operating cash flow shifted from negative to positive, resulting in a much improved free cash flow. Versus the same quarter last year, revenue was lower and free cash flow was lower, with a weakened margin.
Monitor whether operating cash flow can sustain its positive level given the sequential swing from negative to positive.