Turning to the balance sheet and cash flow statement. We ended Q3 with $308.6 million in cash, cash equivalents and restricted cash and $487.4 million of long-term debt, net of discount, resulting in a 0.88 times net debt to trailing 12-month adjusted EBITDA ratio. Free cash flow in our historically strong third quarter was $180.8 million compared with $178.3 million in the prior year, up 1% due primarily to timing. Recall that in our Q2 free cash flow growth was very strong. Adjusted unlevered free cash flow, which adjusts for the impact of transaction costs, sponsor costs, impaired leases and other nonrecurring cost paid in cash was $200.1 million, up 6.6% year-over-year from $187.6 million in the year ago quarter. Our collections activity normalized this quarter, so the year-over-year increase reflected that.
I will now conclude the call by providing guidance for Q4 and for the full year of 2023 for revenue and adjusted EBITDA. We have provided additional guidance details in our earnings press release. For the fourth quarter of fiscal 2023, we expect revenue in the range of $133.3 million to $135.3 million. For the full year, we expect revenue to be in the range of $528 million to $530 million, up $2.8 million at the midpoint compared with the annual guidance we provided on our Q2 call in July. We expect Q4 adjusted EBITDA in the range of $53 million to $55 million, representing an adjusted EBITDA margin of 40.2% at the midpoint. For the full year, we expect adjusted EBITDA in the range of $211 million to $213 million, representing an adjusted EBITDA margin of 40.1% at the midpoint.
For the full year, we expect adjusted unlevered free cash flow to be in the range of $207 million to $211 million for an adjusted unlevered free cash flow margin of 39.5% at the midpoint. In summary, our Q3 and year-to-date results were very strong, as once again, we exceeded our guidance. We continue to execute at a high level to deliver growth, best-in-class margins and strong free cash flow. As I depart Instructure, I want to say thank you to all of my colleagues and to our investors and analysts as well. I’m grateful for the opportunity to have been CFO for the last four years, and I’m delighted to leave the business in such a great financial position. I have utmost confidence in this company and the ability of its people to continue executing.
As I step away from Instructure, in the near term, I’m delighted to share that I’ll be leveraging the Canvas Learning Platform as a substitute math teacher in the Salt Lake Area Middle Schools. I wish Peter well as he assumes his role — this role. I’m certain you will all enjoy meeting him, working with him if you haven’t already. With that, I’ll turn it back to Steve.
Steve Daly: Thank you, Dale, and thanks again for your service to Instructure. We all appreciate that you’ve left the business in such great shape financially. I have every confidence that we will continue to execute and carry on the great track record you’ve established. It’s now my pleasure to introduce our incoming CFO, Peter Walker. Peter has 15-plus years of executive experience, including more than 10 years as a CFO. He is currently the CFO of Sterling Check Corporation and will start at Instructure on November 13. Peter?
Peter Walker: Thank you, Steve. I’m thrilled to be Instructure’s next CFO. You and your team have built a market-leading global technology business from start-up to scale in just 15 years with a mission-driven culture and people I knew immediately were a great fit with my values and aspirations. My significant experience in executive roles as both a CFO and Chief Strategy Officer for global public companies and prior P&L ownership responsibility will add depth to Instructure’s leadership team. My success in designing and leading strategies that grow organic and inorganic revenue, improve customer experience and reduce costs will be impactful as we move into the next phase of Instructure’s growth, from $0.5 billion in revenue to $1 billion plus and beyond.
I’m excited to create value for Instructure’s stakeholders as we continue to grow the business and expand profitability. I’m particularly passionate about Investor Relations. One of my first priorities is our investor engagement roadmap, building on all the great work that has been done. I’m also passionate about leading and developing Instructure’s strong finance team. I will attend the Raymond James Conference in New York in early December with Steve. I look forward to meeting more of the investor community there. That concludes our prepared remarks. At this time, operator, please open up the line for questions.
Operator: Thank you. [Operator Instructions] We’ll go first this afternoon to Stephen Sheldon at William Blair.
Stephen Sheldon: Great. Thanks. It’s been great working with you, Dale, and look forward to working with you, Peter. First here on the Parchment deal, it sounds like you’re expecting a low double-digit growth there. But do you think there’s an opportunity to accelerate that growth rate, especially with any benefit from cross-selling between the two businesses? And maybe just any detail on what cross-selling opportunities there could look like.
Steve Daly: Yes. Yes. Thanks for the question, Stephen. We have been really excited about this acquisition. I think the way that it connects our — what we do in the classroom with the evidence of what’s the learning that’s happened and the ability to demonstrate that, that the learners can demonstrate their skills and their accomplishments is what, one, the industry needs, and it also really accelerates our strategy. The reality is, we’ve been appropriately conservative, I think, in the modeling, as we’ve done — as we’ve set guidance as we’ve built the models around this. There are areas where we believe that there are top line synergies over time. We haven’t built those into our models today, but particularly as we think about students as they cross those transition points, so dual enrollment, the ability to share courses across campuses works really well with our catalog product, the badges work that we’re both doing, the comprehensive learning record over time, we do believe that those will all be accretive growth drivers for us.
